Question

**This is my FOURTH time posting this, if you do not have the correct answer please do not respond*

After shopping for a car Amelia ended up borrowing $14300 from her grandparents at 7% per year compounded annually with repayment at the end of 5 years. Her Grandparents asked her to develop some alternative repayment options.

If Amelia's TVOM is 10%, what is the present worth for Amelia of each of the following 3 alternatives?

1) Interest only at the end of each year and principal at the end of the fifth year. $____
2) Equal annual payments. $____
3) Pay the principal and interest in one lump sum after 5 years? $____

If Amelia's TVOM is 4%, what is the present worth for Amelia of each of the following 3 alternatives?

1) Interest only at the end of each year and principal at the end of the fifth year. $____   
2) Equal annual payments. $____   .
3) Pay the principal and interest in one lump sum after 5 years? $____   

**LISTED BELOW ARE THE INCORRECT ANSWERS**

1) $12673.75171

2) $14300

3) $12453.5

Second Part

1) $16,209.83227

2) $14300

3) $16484.97259

Answer 1