(Appendix 8A)(Ignore Income Taxes in This Problem

Multiple Choice

(Appendix 8A) (Ignore income taxes in this problem. ) 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