单选题 Five years ago, an investor borrowed $5000 from a financial institution that charged a 6% annual interest rate and immediately took his family to five in Nepal. He made no payments during the time he was away. When he returned, he agreed to repay the original loan plus the accrued interest by making five end - of - year payments starting one year after he returned. If the interest rate on the loan is heldconstant at 6% per year,, what annual payment must the investor make in order to retire the loan?

A、

A. $1338.23.
B、

B. $1588.45.
C、

C. $1638.23.

【正确答案】 B

【答案解析】
With no interest paid on the original $5000 loan, at 6% in five years the loan balance will be:
New loan balance = $5000 (1.06)⁵=$6691.13 or PV=5000 ; I/Y=6; N=5; PMT=0 ; CPT→FV=$6691.13.
$6691.13 is the loan that has to be retired over the next five years. The financial calculator solution is :
PV=6691.13; I/Y=6; N=5; CPT→PMT=-1588.45.