Suppose the City of St$.$ George, Utah, decides to assist residents by installing sidewalks in their neighborhood. Construction will be financed by cash provided from a ten$-$year, $3$ percent, serial bond issue for which the government has no liability. Bonds mature at a rate of $$500,000$ per year. Area residents are assessed over a ten$-$year period to cover bond principal and interest payments. Events are as follows:

Serial bonds are issued, totaling $$5,000,000.$

Assessments are levied on area residents to cover the first year's principal andinterest payments.

Assessments are collected and the first year's bond principal and interest are paid.