At what discount rate, will the present value of a $10,000 ordinary annuity payments for 5 years be worth $35,000 today?

7.90%

11.22%

13.20%

16.41%

None of the above

Solution is below. Need clarification on how problem was answered. I need to know formula on how solution was discovered.

Answer: 13.20%

Inputs: PV = -35,000

FV = 0

N = 5

PMT = 10,000

Solve for I = 13.20%

PV is input as a negative because it represents money leaving your pocket.

The payments are input as positives because they represent money coming into your pocket.