A factory operator bought a diesel generator set for P 10,000.00 and agreed to pay the dealer uniform sum at the end of each year for 5 years at 8% interest compounded annually, that the final payment will cancel the debt for principal and interest. What is the annual payment?

• A. P 2,540.56
• B. P 2,500.57
• C. P 2,544.45
• D. P 2,504.57

Answer: (D)