Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin

Exercise 33

Two engineering graduates who recently got married are planning for their early retirement 20 years from now. They believe that they will need $2,000,000 in year 20. Their plan is to live on one of their salaries and invest the other. They already have $25,000 in their investment account. a) How much will they have to invest each year if the account grows at a rate of 10% per year b) If the maximum they have available to invest each year is $40,000, will they reach their goal of $2 million by year 20