You are the financial planner for Johnson Controls. Assume last year's profits were $$780,000.$ The board of directors decided to forgo dividends to stockholders and retire high$-$interest outstanding bonds that were issued $4$ years ago at a face value of $$1,500,000.$ You have been asked to invest the profits in a bank. The board must know how much money you will need from the profits earned to retire the bonds in $8$ years. Bank A pays $8\%$ compounded quarterly, and Bank B pays $9\%$ compounded annually. $($Use Table $1$ and Table $2$ provided.$)$

Note: Do not round intermediate calculations. Round your answers to the nearest dollar amount.

a$-1.$ Which bank would you recommend?

Bank A

Bank B

a$-2.$ How much of the company's profit should be placed in the bank?

$$ Profit

b$.$ If you recommended that the remaining money not be distributed to stockholders but be placed in Bank $B,$ how much would the remaining money be worth in $8$ years?

Future Value