Jacob's friend, Albert, borrows 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

Question

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The Answer of Jacob's friend, Albert, borrows 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

Jacob's Friend, Albert, Borrows Today with a Promise to Repay