Malte Ringer was seriously injured in an industrial accident. He sued the responsible parties and was awarded a judgment of $3,000,000. Today, he and his attorney are attending a settlement conference with the defendants. The defendants have made an initial offer of $225,000 per year for 25 years. Malte plans to counteroffer at $300,000 per year for 25 years. Both the offer and the counteroffer have a present value of $3,000,000, the amount of the judgment. Both assume payments at the end of each year. a. What interest rate assumption have the defendants used in their offer (rounded to the nearest whole percent)? 3 marks b. What interest rate assumption have Malte and hif lawyer used in their counter offer (rounded to the nearest whole percent)? 3 marks c. Malte is willing to settle for an annuity that carries an interest rate assumption of 9%. What annual payment would be acceptable to him? 3 marks