How Much Would You Have to Invest Today in the Bank

Multiple Choice

How much would you have to invest today in the bank at an interest rate of 5% to have an annuity of $1,400 per year for 5 years, with nothing left in the bank at the end of the 5 years? Select the amount below that is closest to your answer.

A) $6,667
B) $6,061
C) $7,000
D) $1,098