Turner Company signs a lease agreement on January 1, 2024, to lease equipment to Holmgren Company. The term of the non-cancelable lease is 4 years, and annual payments are required at the beginning of each year. The following information relates to this agreement.

- Holmgren has the option to purchase the equipment for $11,000 upon termination of the lease. It is reasonably certain that Holmgren will exercise this option (i.e. it is a bargain purchase).

- The equipment has a cost of $131,000 and fair value of $174,000 to Turner. Its useful economic life is 7 years.

What annual rental amount will Williamson charge if it desires to earn a return of 8% on its investment?