Please answer the following questions:

1. A company just bought a machine costing $20,000. Its price is expected to rise 5% each year for next 10 years. At the end of the 10th year it will have to be replaced. How much money would have to be placed in a sinking fund each year to replace this machine at the end of 10 years if the fund yields 9% annual interest rate? Assume the salvage value is zero. Round your answer to 2 decimal places.

2. As soon as you secured your first job, you called your student loan company to discuss loan repayments in order to pay it in 5 years. The loan company told you that you can pay $A/month for next 5 years to pay off your debt which is $25,000, at an interest rate of 6% compounded monthly. What is A equal to? Round your answer to 1 decimal place.

3. You are wondering if you should upgrade your IT department by investing $125,000 for equipment that will last 10 years. If the interest is 8%, how much must this upgrade benefit you each year to justify the investment?