Answer:
$1,262.48
Explanation:
The computation of the first payment is shown below:
= Annual payments × (1 + rate) ^ remaining years
= $1,000 × (1 + 0.06) ^ 4 years
= $1,000 × 1.06 ^ 4 years
= $1,262.48
The remaining years would be
= 5 years - 1 years
= 4 years
Since from 1 year to 5 years, the number of years would be 4 and the same is considered in the computation part
