Engineering Economy – Problem 2.8

In planning for your retirement, you expect to save $5000 in year 1, $6000 in year 2 and amounts increasing by $1000 each year through year 20. If your investments earn 10% per year, the amount you will have at the end of year 20 is closest to: (a) $242,568(b) $355,407(c) $597,975(d) $659,125 Sample problems…

A manufacturing company spent $30,000 on a new conveyor belt. If the conveyor belt resulted in cost savings of $4200 per year, the length of time it would take for the company to recover its investment at 8% per year is closest to: (a) Less than 9 years(b) 9 to 10 years(c) 11 to 12…

If you are able to save $5000 in year 1, $5150 in year 2, and amounts increasing by 3% each year through year 20, the amount you will have at the end of year 20 at 10% per year interest is closest to: (a) $60,810(b) $102,250(c) $351,500(d) Over $410,000 Sample problems and notes are based…