Ferris, Inc., has borrowed from their bank at a rate of 8 percent and will repay the

Question:

Ferris, Inc., has borrowed from their bank at a rate of 8 percent and will repay the loan with interest over the next five years. Their scheduled payments, starting at the end of the year are as follows%u2014$450,000, $560,000, $750,000, $875,000, and $1,000,000.

What is the present value of these payments? (Round to the nearest dollar.)