A bank is negotiating a loan. The loan can either be paid off as a lump sum of

$80,000

at the end of

four

years, or as equal annual payments at the end of each of the next

four

years. If the interest rate on the loan is

11%,

what annual payments should be made so that both forms of payment are equivalent?

A.

$13,589

B.

$23,780

C.

$16,986

D.