Present Value of Multiple Annuities A small business owner visits his bank to ask for a loan. The owner states that he can repay a loan at $2,400 per month for the next three years and then $3,400 per month for the two years after that. If the bank is charging customers 7.50 percent APR, how much would it be willing to lend the business owner?
a) $13,500
b) $137,530
c) $180,000.
d) $169,678