Doug is looking to buy a fixed interest investment. He has found one that pays interest of $400 each year (fixed) for 4 years. If the current interest rates for a similar investment are 5% per annum (compounding annually), what is the maximum amount Doug should pay for this investment?

Hint: calculate the present value of this investment.

		$1,600
		$1,418
		$1,316
		$1,280

0.6 points