Engineering graduates earn $880,000 more than the average Liberal Arts BA holder in a career. Assume the $880,000 is a lump-sum equivalent at the end of a 35-year career. How much extra does the engineering grad earn per year if the interest rate is 7% per year?

Engineering graduates earn $880,000 more than the average Liberal Arts BA holder in a career. Assume the $880,000 is a lump-sum equivalent at the end of a 35-year career. How much extra does the engineering grad earn per year if the interest rate is 7% 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

Engineering graduates earn $880,000 more than the average Liberal Arts BA holder in a career. Assume the $880,000 is a lump-sum equivalent at the end of a
35-year career. How much extra does the engineering grad earn per year if the interest rate is 7% per year?
Click the icon to view the interest and annuity table for discrete compounding when i= 7% per year.
The engineering grad earns extra $
per year. (Round to the nearest dollar.)

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