(a)
The annual investment.
Answer to Problem 2P
The annual investment is
Explanation of Solution
Given:
The compound amount in future is
The time period is
The earning of engineer is
Concept used:
Write the expression for annual investment.
Here, the compound amount in future is
Calculations:
As per the table of return data for capital allocation line, the interest rate is
Calculate the annual investment.
Substitute
Conclusion:
Thus, the annual investment is
(b)
The annual investment.
Answer to Problem 2P
The annual investment is
Explanation of Solution
Given:
The compound amount in future is
The time period is
The earning of engineer is
Calculations:
Calculate the annual investment.
Substitute
Conclusion:
Thus, the annual investment is
(c)
The investment per year by the employee and the employer.
Answer to Problem 2P
The investment by employer is
The investment by employee is
Explanation of Solution
Given:
The compound amount in future is
The time period is
The earning of engineer is
Calculations:
Calculate the annual investment.
Substitute
The annual investment is
Calculate amount to be investment by the employer.
The amount to be investment by employer is
Calculate the amount to be investment by employee.
The amount to be investment by employee is
Conclusion:
Thus, the amount to be invested by the employer is
The amount to be invested by the employee is
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Chapter 10A Solutions
Engineering Economic Analysis
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