Question: Brown is repaying a $1,000 loan with 5 equal payments of principal at the end of each year. Interest at an annual effective rate of

Brown is repaying a $1,000 loan with 5 equal payments of principal at the end of each year. Interest at an annual effective rate of 10% is paid on the outstanding balance each year. The first installment is due one year from today. Immediately after the loan was made, the loan was sold to an investor. Find the price the investor paid to earn an annual effective rate of 5%.

The answer is 1134.105, but I'm not sure how to get there.

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