Example: Suppose $1500 is deposited at the end of each year for the next 6 years in an account paying 8% interest compounded annually. Find the future value of this annuity. (In other words, how much will be in the account at the end of the 6 years.)

Example: Suppose $1500 is deposited at the end of each year for the next 6 years in an account paying 8% interest compounded annually. Find the future value of this annuity. (In other words, how much will be in the account at the end of the 6 years.)

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter6: Saving And Investing

Section6.1: Why Save?

Problem 6R

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This is engineering economic.

Example: Suppose $1500 is deposited at the end of each year for the next 6 years in an account
paying 8% interest compounded annually. Find the future value of this annuity. (In other words,
how much will be in the account at the end of the 6 years.)

Application of economic techniques to the evaluation of design and engineering alternatives. The role of engineering economics is to assess the appropriateness of a given project, estimate its value, and justify it from an engineering standpoint.

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