Loan amortization and capital recovery

Ian loaned his friend $$20,000$ to start a new business. He considers this loan to be an investment, and therefore requires his friend to pay him an

interest rate of $7\%$ on the loan. He also expects his friend to pay back the loan over the next four years by making annual payments at the end of

each year. Ian texted and asked that you help him calculate the annual payments that he should expect to receive so that he can recover his initial

investment and earn the agreed$-$upon $7\%$ on his investment.

Calculate the annual payment and complete the following capital recovery schedule: