Albert Borrows Money from Jacob Today with a Promise to Repay

Multiple Choice

Albert borrows money from Jacob today with a promise to repay $7,418.87 in four years. If Jacob could earn 5.45 percent annually on the any investment he makes today, how much would he be willing to lend Albert today? (Round to nearest dollar.)

A) $6,000
B) $7,035
C) $6,500
D) $7,150