3. An engineer deposits $8000 in year 1, $8500 in year 2, and amounts increasing by $500 per year through year 10. At an interest rate of 10% per year, the present worth in year 0 is closest to (a) $60.600 (b) $98.300 (c) $157,200 (d) $173,400

3. An engineer deposits $8000 in year 1, $8500 in year 2, and amounts increasing by $500 per year through year 10. At an interest rate of 10% per year, the present worth in year 0 is closest to (a) $60.600 (b) $98.300 (c) $157,200 (d) $173,400

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

3. An engineer deposits $8000 in year 1, $8500 in year 2, and amounts increasing by $500 per
year through year 10. At an interest rate of 10% per year, the present worth in year 0 is closest to
(a) $60,600
(b) $98,300
(c) $157,200
(d) $173,400

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