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accumulate, how much must be deposited initially so that will have accumulatedafter 10 years? 5.A student plans to deposit each year in a savings account, over a period of 10years. If the bank pays 6% per year compounded annually, how much money willhave accumulated at the end of the 10-year period?
Let’s Analyze Activity 1: Getting acquitted with the essential terminology and basic concepts in thestudy of engineering economy is not enough, one should be able to analyze and solvecomplex cost problems involving interest, cash flow analysis, annuities and decisionmaking methods. At this juncture, you will be required to elaborate your answers about the followingquestions: 1. An engineer who is planning his retirement has decided that he will have to withdraw10 000 from his savings account at the end of each year. How much money must theengineer have in the bank at the start of his retirement, if his money earns 6% per year,compounded annually, and he is planning a 12-year retirement (say 12 annualwithdrawals)?
2. An engineer is planning for a 15-year retirement. In order to supplement his pensionand offset the anticipated effects of inflation, he intends to withdraw5000 at the end of