You have a savings account that earns 5% interest, compounded annually. A friend has offered you an investment opportunity; he says that if you invest in his new business, he will pay you $36,000 a year for the next five years. What is the maximum amount you would be willing to invest in your friend's business? (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.) (Use appropriate factor from the PV tables. Round your final answer to the nearest dollar amount.)

Multiple Choice

• $155,862

• $171,000

• $171,428

• $180,000