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1) We would like to spend $10,000 per year for 3 years on new restaurant equipment

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1) We would like to spend $10,000 per year for 3 years on new restaurant equipment.  Assuming we can earn 8% on our investments, how much do we need to have today to be able to afford this spending program?  Round your answer to the nearest dollar ($) and show your calculator steps.

2) A $1,000 par value bond could be purchased for $961.63.  The bond matures in 6 years and has a coupon rate of 4%.  Calculate the yield to maturity to 2 decimal places and show your calculator steps.

3) If you deposit $10,000 in a bank account that pays 10% interest annually, how much will be in your account after 5 years?

4) What is the present value of a security that will pay $5,000 in 20 years if securities of equal risk pay 7% annually?