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  3. a. on may 15, 2018 phil brubaker reached a settlem

a. On May 15, 2018 Phil Brubaker reached a settlement on a long overdue contract....

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a. On May 15, 2018 Phil Brubaker reached a settlement on a long overdue contract. The settlement results in Phil receiving a total of $2,000,000scheduled over 5 annual payments of $400,000 each. The first payment starts on May 15, 2021, with the remaining 4 payments following on May 15, 2022, May 15, 2023, May 15, 2024, and May 2025. Phil wants to know the present value of his settlement today on May 15, 2018, at a 4% interest rate. Show all calculations 10 b. Stanton Electronics Corporation issued $3,500,000 of 5.75% 10. year bonds. Interest is payable annually on the bonds, however, the company's CFO is concerned about having sufficient funds to pay back the bonds at the end of 10 years. Therefore, the CFO is establishing a "Bond Sinking Fund" by making annual deposits of $250,000 to the fund starting at the end of the first year and continuing through the end of the 10th year. The fund is projected to provide a return of 4% per year. Will the CFO' s planned deposits be sufficient to meet the obligation? If the planned deposits are insufficient, how much should the annual deposit be increased by in order to meet the obligation? Show al1 calculations 10

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