you are the financial planner for johnson controls. assume last years profit's were $$720,000.$ the board of directors decided to forgo dividends to stockholders and retire high$-$interest outstanding bonds that were issued $6$ years ago at a face value of $$1,340,000.$ 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 in the bonds in $10$ years. bank a pays $6\%$ compunded quarterly and bank b pays $7\%$ compounded annually, which bank would you recommend?

how much of the company's profit should be placed in the bank?

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 worrh in $10$ years?