To determine how large each of Deborah's annual payments will be, we can use the formula for the annuity payment when a loan is being repaid with equal payments over time:

$A = \frac{P \cdot r}{1 - (1 + r)^{-n}}$

Where:

• $A$ = the amount of each annual payment,
• $P$ = the loan amount (principal),
• $r$ = the interest rate per period,
• $n$ = the number of periods (number of years).

Given:

• $P = 5100$ dollars,
• $r = 5.6\% = \frac{5.6}{100} = 0.056$,
• $n = 8$ years.

Now, we can plug in the values and calculate $A$.

$A = \frac{5100 \cdot 0.056}{1 - (1 + 0.056)^{-8}}$

Let's calculate that now.The size of each annual payment is approximately $808.33.

Would you like more details or have any questions about this calculation?

Here are 5 related questions to consider:

1. What happens to the payment size if the interest rate increases to 6%?
2. How would the payment change if the loan duration was 10 years instead of 8?
3. What is the total amount Deborah will have repaid after 8 years?
4. How much of the first payment goes towards interest versus the principal?
5. What is the outstanding balance after the first payment?

Tip: The formula for annuity payments can also be applied to saving plans where regular deposits are made at a constant interest rate.