A practicing engineer has decided to set up a travel fund for future vacations. The fund...

 

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A practicing engineer has decided to set up a travel fund for future vacations. The fund pays interest at 8% per year. This year, the engineer deposits $5,000 in the fund. Five years from now, the engineer deposits $2,000 with deposits increasing by two percent per year until year twenty. The engineer will begin making trips twenty- five years from now. The engineer estimates that each trip will cost $20,000 per year. Assuming the engineer will make a trip each year, compute the number of years to two decimal places that the engineer will be able to make a yearly trip until the fund is depleted. (25 nointe) A practicing engineer has decided to set up a travel fund for future vacations. The fund pays interest at 8% per year. This year, the engineer deposits $5,000 in the fund. Five years from now, the engineer deposits $2,000 with deposits increasing by two percent per year until year twenty. The engineer will begin making trips twenty- five years from now. The engineer estimates that each trip will cost $20,000 per year. Assuming the engineer will make a trip each year, compute the number of years to two decimal places that the engineer will be able to make a yearly trip until the fund is depleted. (25 nointe)

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