You want to make five annual payments of $6,000 beginning now in order to accumulate $35,000 for a down payment on a house in five years. What is the annual interest rate you would need to receive to accomplish this goal?

Note: Use tables, Excel, or a financial calculator. Round your final answer to the nearest whole percentage. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)

Multiple Choice :

1) 5.0%.

2) 5.5%.

3) 4.0%.

4) 4.5%.