An engineer will deposit 15% of her salary each yearinto a retirement fund. If her current annual salary isS80.000 and she expects that it will increase by 5%each year, what will be the present worth of the fundafter 35 years if it carns 5% per year?12)%The State University is considering funding optionsfor a new engineering building on campus. Themoney has been raised for the construction costs andnow the focus is raising funds for the annual upkeep .8and maintenance (U&M) expenses. For this build-ing, contractors will be hired with a series of 3-yearagreements over the 30 years. Under each contrathe university will pay $125,000 at the beginning o.each 3-year agreement to cover all U&M buildingexpenses over that 3-year period. The first 3-yearagreement begins when the building opens.A wealthy alumnus has agreed to donate enoughat the building's opening to cover the U&M expensesover the 30-year term. If money invested by theschool's engineering foundation earns 6% interestcompounded quarterly, how much must be donated?ube1910112131415161718192013)Annual maintenance costs for a particular section ofhighway pavement are $2500. The placement of anew surface would reduce the annual maintenancecost to $500 per year for the first 3 years and to $1000per year for the next 7 years. After 10 years theannual maintenance would again be $2500. If main-tenance costs are the only saving, what invert

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An engineer will deposit 15% of her salary each year into a retirement fund. If her current annual salary is S80.000 and she expects that it will increase by 5% each year, what will be the present worth of the fund after 35 years if it carns 5% per year?

An engineer will deposit 15% of her salary each year into a retirement fund. If her current annual salary is S80.000 and she expects that it will increase by 5% each year, what will be the present worth of the fund after 35 years if it carns 5% per year?

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

An engineer will deposit 15% of her salary each year
into a retirement fund. If her current annual salary is
S80.000 and she expects that it will increase by 5%
each year, what will be the present worth of the fund
after 35 years if it carns 5% per year?
12)
%
The State University is considering funding options
for a new engineering building on campus. The
money has been raised for the construction costs and
now the focus is raising funds for the annual upkeep .8
and maintenance (U&M) expenses. For this build-
ing, contractors will be hired with a series of 3-year
agreements over the 30 years. Under each contra
the university will pay $125,000 at the beginning o.
each 3-year agreement to cover all U&M building
expenses over that 3-year period. The first 3-year
agreement begins when the building opens.
A wealthy alumnus has agreed to donate enough
at the building's opening to cover the U&M expenses
over the 30-year term. If money invested by the
school's engineering foundation earns 6% interest
compounded quarterly, how much must be donated?
ube
1
9
10
1
12
13
14
15
16
17
18
19
20
13)
Annual maintenance costs for a particular section of
highway pavement are $2500. The placement of a
new surface would reduce the annual maintenance
cost to $500 per year for the first 3 years and to $1000
per year for the next 7 years. After 10 years the
annual maintenance would again be $2500. If main-
tenance costs are the only saving, what invert

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