On January 1, 2007 Charles Jamison borrows $40,000 from his father to open a business. The son is the beneficiary of a trust created by his favorite aunt from which he will receive $25,000 on January 1, 2017. He signs an agreement to make this amount payable to his father and, further, to pay his father equal annual amounts from January 1, 2008 to January 1, 2016, inclusive, in retirement of the debt. Interest is 12%.
Required
What are the annual payments?