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

Disclaimer :- As you posted multiple questions we are supposed to solve only the first one. If salary is growing 5% annually and 15% of salary is for retirement fund for 35years and with 5% return then you will found the Geometric series of deposits . And with the help of gp you will get Present value of fund .PV = Present value = future value /( 1+ r) ^n

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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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