Your neighbour makes you the following offer. He would like to borrow $16,000 today. He will repay this amount by making 15 annual payments with the first payment being made at the end of this year. If the payments grow by 9.50% each year and the appropriate discount rate is 12.50%, how much will your neighbour pay you at the end of the first year?

Question 2 options:

	$1,368
	$1,404
	$1,440
	$1,476
	$1,512