A company's 2005 sales were $10 million. If sales grow at 8% per year, how large will they be in 8 years? 

2. Suppose a government bond will pay $1,000 three years from now. If the going interest rate on 3 year government bonds is 4%, how much is the bond worth today? 

3. The bank offers to sell you a bond for $613.81. No payments will be made until the bond matures 10 years from now, at which time it will be redeemed for $1,000. What interest rate would you earn if you bought this bond at the offer price?