Question: Assume you borrow $100,000. You agree to pay the loan with a 5 year, annual ordinary annuity at 6%. (You will make 1 payment each year for 5 years, with the first payment due 1 year from today.) The loan will be fully repaid at the end of 5 years. {Note: even though the question specifies a 5 year annuity, you do not need to construct the entire amortization schedule to answer the following question.} What is your annual payment? Choose the best answer.
$22,600
$20,000
$23,300
$23,700
$24,100