A company borrowed $500,000 cash from the bank by signing a 5-year 6% installment note. The present value factor for an annuity at 6% for 5 years is 4.2124. Each annuity payment equals $118,697. The present value of the note is (rounded):
$5,669,075.
$169,075.
$500,000.
$30,000.
$669,075.