Jim just bought a new truck for his construction business. The price of the vehicle was $40,000. Jim made a $5,000 down payment and took out a bank loan for the rest. The car dealership made the loan at 8% interest compounded yearly for 5 years. Jim is to repay the loan in equal annual installments, beginning one year from now. Determine the amount of the yearly payment that Jim has to make to the bank. Round your answer to the nearest dollar.

Select one:

a. $8,093

b. $7,458

c. $7,096

d. $8,766