Please answer in detail.

Peace has been working at the college for 26 years and has decided that she should setup an annuity with an insurance company that would pay her a sum (certain dollar amount) each year to supplement her college pension, CPP and generous allowance she intends on receiving from her son.

Peace plans on retiring in 5 years (end of t5) and is fairly certain that she will need her retirement savings to pay her out over an 18 year period. Assume all payment will occur at year end, the first payment she will receive will be at the end t6. Peace feels she can afford to make 5 annual payment of $8000 into the account, starting at the end of next year (so end t1 to end t5).

If the insurance company guarantees her an interest rate of 5% p.a. on all deposits and the annuity payout, how much will Peace receive annually from her contributions? That is, what annual sum (or payment) will be paid to her to help supplement her retirement income?