A recent study conducted in January of 2016indicated that the mean annual salary forengineers was $98,300 per year. Another studyindicates that the peak average salary for liberalarts majors is $58,000 per year. Assuming thatmost college graduates will work for 50 years andthat the time value of money averages 5% peryear, compute the future worth of an engineer'ssalary and the future worth of a liberal arts major'ssalary. Compute the difference between the twofuture worth amounts.

Annual salary is the amount of money your employer pays you over the course of a year in exchange…

dicates that the peak average salary for liberal ts majors is $58,000 per year. Assuming that ost college graduates will work for 50 years ar at the time value of money averages 5% per ear, compute the future worth of an engineer's

dicates that the peak average salary for liberal ts majors is $58,000 per year. Assuming that ost college graduates will work for 50 years ar at the time value of money averages 5% per ear, compute the future worth of an engineer's

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

A recent study conducted in January of 2016
indicated that the mean annual salary for
engineers was $98,300 per year. Another study
indicates that the peak average salary for liberal
arts majors is $58,000 per year. Assuming that
most college graduates will work for 50 years and
that the time value of money averages 5% per
year, compute the future worth of an engineer's
salary and the future worth of a liberal arts major's
salary. Compute the difference between the two
future worth amounts.

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