IEN 380 - Engineering Economy In Class Problems Directions: Answer each question, show the formulas used, and show all your work. 1. You have just graduated from College and you have an excellent job as an engineer. You decide to move back home for 2 years so that you can save for a down payment on your place. Because you are at home, you are able to save $2000 per month in an interest bearing account earning 3%. At the end of the two years, you will buy a place of your own. You will be able to continue to pay $2000 a month but from that money you must pay your mortgage payment; $350 in groceries, $200 in utilities (electricity, water and phone/internet); and $500 in taxes mortgage interest rate is 6% annually and it is compounded monthly. a. Draw the cash flow diagram for this problem from the banks perspective. You do not need to include the groceries, utilities or taxes. b. How much money will you have available for the down payment at the end of two years