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

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