ENGR 391 ENGINEERING ECONOMICS

1. For retirement, you decide to deposit $1950 at the end of each year and you will increase your deposit by $110 per year. How much will you have at the end of 20 years if the bank pays 2.5% compounded annually?

2.How much do you have to deposit today in order to allow 8 annual withdrawals, beginning at the end of year 13, with a first withdrawal of $1837 and with subsequent withdrawals decreasing at the rate of 1% over the previous years withdrawal? Assume an interest rate of 6% compounded annually.

3.What is the amount of six equal annual deposits that can provide ten annual withdrawals, where a first withdrawal of $18933 is made at the end of year seven and subsequent withdrawals increase at $1345 over the previous year, at an interest rate of 5% compounded annually?