1. Your friend, Alistair borrowed $2,000 from you 4 years ago and then disappeared. Yesterday he returned and expressed a desire to pay back the loan, including the interest accrued. Assuming that you had agreed to charge him 10%, and assuming that he wishes to make five equal annual payments beginning in one year, how much would Alistair have to pay you annually in order to extinguish the debt? (Assume that the loan continues to accrue interest at 10% per year.)
   1. $697.43
   2. $738.63
   3. $751.46
   4. $772.45
   5. $798.24