PLEASE ANSWER ALL PARTS!

Suppose that one year ago, Tim, a wheat farmer, obtained a loan for 1,000 bushels of wheat at a rate of $$3.50 per bushel from the government. The simple annual interest rate at which Tim is required to repay the loan is 5% of the total amount of the loan. If Tim decides to reclaim the contracted 1,000 bushels of wheat, the total amount that he must pay the government is What will Tim do if the market price of wheat is $4.00 per bushel? He will repay the loan in exchange for the 1,000 bushels of wheat and then sell the wheat at the market price. He will keep the loan and forfeit the 1,000 bushels of wheat