Exercise $5)$ You own a small startup software firm and need a second investment round to keep the company

afloat for another year. To comply with IRS guidelines, you must compile a publicly accessible financial report.

A$.$ The company has had investors take care of the initial cost of the startup, but you are concerned with

having a standing amount of $$1,000,000$ that can be used for emergency purchases in the future. The

company is using a $5-$year plan sinking fund to create this future reserve with a rate of $2\%$ compounding.

What monthly payments are needed to create this reserve amount in the allotted time?

B$.$ Early in the year, your software security was cyber$-$hacked, causing an emergency cybersecurity

overhaul. This was an unexpected expense, and thus, a loan was taken out to fix the malware attack as

fast as possible. The emergency cyber security cost a total of $$98,550.$ You could put down $$10,000$ but

needed to finance the rest at a rate of $4\mathrm{.}5\%$ compounded monthly over $3$ years. How much are the

monthly payments required to pay off the loan?

C$.$ Since the cyber security fix loan was made for business$-$related purposes, the interest is tax$-$deductible.

How much total interest was paid based on the purchase?