1. A friend told you that he recently bought into an investment that pays $4800 per year (split into 12 equal payments per year) for 8 years. A bank was willing to lend him 50% of the investment outlay at an annual interest rate of 5% compounded monthly. Which of the following do you think is the most plausible price that he paid for this investment?

1. 31,023.42
2. 34,416.66
3. 31,595.78
4. 28,295.19
5. 34,770.99