1. AyayaiCorporation, having recently issued a $20,009,700,15-year bond issue, is committed to make annual sinking fund deposits of $608,900. The deposits are made on the last day of each year and yield a return of10%. Determine the amount of deficiency.(Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)
2. Under the terms of his salary agreement, presidentMorganWalters has an option of receiving either an immediate bonus of $77,000, or a deferred bonus of $98,000payable in10years. Ignoring tax considerations and assuming a relevant interest rate of4%, which form of settlement should Walters accept?