C.1.) A graduating class of civil engineers decides they will present the engineering college with a gift of $100,000 at their twenty-fifth reunion. There are 50 in the class and they can invest at 8 percent. They plan to start out giving a small amount at the end of the first year and in- crease their gifts to the class fund by 10 percent each year. Find the amount each graduate would donate at the end of the first year in order to reach their class goal of $100,000 at the end of 25 years.

C.1.) A graduating class of civil engineers decides they will present the engineering college with a gift of $100,000 at their twenty-fifth reunion. There are 50 in the class and they can invest at 8 percent. They plan to start out giving a small amount at the end of the first year and in- crease their gifts to the class fund by 10 percent each year. Find the amount each graduate would donate at the end of the first year in order to reach their class goal of $100,000 at the end of 25 years.

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

Geometric gradient.
C.1.) A graduating class of civil engineers decides they will present the engineering college with
a gift of $100,000 at their twenty-fifth reunion. There are 50 in the class and they can invest
at 8 percent. They plan to start out giving a small amount at the end of the first year and in-
crease their gifts to the class fund by 10 percent each year. Find the amount each graduate
would donate at the end of the first year in order to reach their class goal of $100,000 at the
end of 25 years.
(Ans. C= $10.03)

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