1. University of Texas is considering purchasing a battery. The battery cost $36,has a useful life of 3 years and will cost $100 per year to keep changed.
2. Your grandfather upon your birth invested $1000 into an account for you. The account has earned an annual rate of 10% a year. On your 21st birthday you could withdraw the accumulated amount. How much can you withdraw?
3. What is the yield to maturity for a bond that pays $45 coupon payments once per year and matures in 10 years and is currently priced at 872.24?