Present Value of Multiple Annuities a Small Business Owner Visits

Multiple Choice

Present Value of Multiple Annuities A small business owner visits his bank to ask for a loan.The owner states that he can repay a loan at $2,000 per month for the next three years and then $1,000 per month for the two years after that.If the bank is charging customers 8.5 percent APR,how much would it be willing to lend the business owner?

A) $80,419.29
B) $6,494.66
C) $21,780.74
D) $96,000.00