59. A ham radio operator wishes to borrow $160,000 to construct a world-class antenna system, transceiver, and amplifi er at an electrically quiet location that can be accessed remotely and controlled via the Internet. Microphone, Morse code, radio teletype, slow-scan TV, and a host of other modes may be used for contesting, amassing DX awards, and chatting from anywhere in the world.

She borrows the money at 8.5 percent. Infl ation is running 3.8 percent. Her combined MARR is 9 percent. The loan is to be paid back over 5 years. What is the amount to be paid at each year-end and the PW (using both then-current and constant dollar approaches) if repayment follows

a. Plan 1 (pay accumulated interest each year and principal at the end of the last year)?

b. Plan 2 (make equal annual principal payments each year, plus interest on the unpaid balance)?

c. Plan 3 (make equal annual payments)?

d. Plan 4 (make a single payment of principal and interest at the end of the last year)?