Question 1081025
he pays back the following sums of money at the end of each year.


year 1 = 1255
year 2 = 1365
year 3 = 1525
year 4 = 1560
year 5 = 1585.


you want to get the present value of all these cash flows at 8.5% per year.


that present value will be equal to:


1255 / 1.085^1 + 1365 / 1.085^2 + 1525 / 1.085^3 + 1560 / 1.085^4 + 1585 / 1.085^5


the result of that is equal to $5689.88


that's how much jeremy borrowed.