1. JB Company recently signed a lease for a new office building, for a lease period of 20 years. Under the lease agreement, a security deposit of $235,000 is made, with the deposit to be returned at the expiration of the lease, plus interest compounded at 4% per year. What amount will the company receive at the time the lease expires? 2. Under the terms of his salary agreement, a CEO has an option of receiving either an immediate bonus of $5,500,000, or a deferred bonus of $7,500,000 payable in 6 years. Ignoring tax considerations and assuming a relevant interest rate of 5%, which form of settlement should the CEO accept and why?