Answer: $536.77
Step-by-step explanation: We can use the formula for the present value of an annuity, which is:
PV = PMT x ((1 - (1 + r)^(-n)) / r)
where PV is the present value of the annuity, PMT is the annual payment, r is the interest rate per period (in this case, annual rate), and n is the total number of periods.
In this case, we are given that the PV of the annuity is $8000, the rate is 4%, and the annuity lasts for 10 years. Therefore, we can plug in these values into the formula and solve for PMT:
8000 = PMT x ((1 - (1 + 0.04)^(-10)) / 0.04)
8000 = PMT x ((1 - 0.5962) / 0.04)
8000 = PMT x (14.905)
PMT = 8000 / 14.905
PMT ≈ $536.77
Therefore, the size of each annual payment is approximately $536.77.
:D