Question

# An engineer has received $10 000 from his employer for a patent disclosure. He has decided to invest the money in

a 15-year savings certificate that pays 8% per year, compounded annually. What will be the final value of his investment in terms of today’s dollar, if the inflation continues at the rate of 6% per year?

Given data

PV = $10000

t =15

inflation i= 61. = 0,06

8 = 0.08

Future value , F V = PV ( Its )

FV = 10000 * (140.08)’

317 21 . 69

FV = $ 31721. 69

final value of his investment in terms of

today’s…

Engineering Technology

An engineer has received $10 000 from his employer for a patent disclosure He has decided to invest the money in