National Book Store
Panneerselvam, R., (2012),
Engineering Economics (Eastern Economy Edition),
New
Delhi: PHI Learning Private Limited
Lindeburg, M., (2014), Civil
Engineering Reference Manual for the PE Exam (14th
Edition),
California: Professional Publications, Inc.
Let’s Check
Activity 1:
Now that you have reviewed the annuity problems in engineering economy,
let us try to check your understanding by solving the following:
1. A student deposits
₱1,000
in a savings account that pays interest at the rate of 6%
per year compounded annually. If all the money is allowed to accumulate, how much
money will the student have after 12 years?
2. A certain sum of money will be deposited in a savings account that pays interest at
the rate of 6% per year compounded annually. If all the money is allowed to accumulate,
how much must be deposited initially so that
₱5000
will have accumulated after 10
years?
3. A student plans to deposit
₱600
each year in a savings account, over a period of 10
years. If the bank pays 6% per year compounded annually, how much money will have
accumulated at the end of the 10-year period?