Option #$2$: Problem Set

For this Critical Thinking Assignment option, complete the following Review Questions from Chapter $7$ of the Financial

Management and Accounting Fundamentals for Construction textbook, listed on p$.194.$

Review Question $3$

You want to accumulate $$500,000$ in a savings account in $20$ years. If the bank pays $6\%$ compounded annually, how much

should you deposit in the account?

Review Question $4$

What is the future value, $8$ years from now, of $$2,000$ invested today at a periodic interest rate of $12\%$ compounded annually?

Review Question $6$

You must decide between job offers from CPM Construction and Fudd Associates. Both companies concentrate on sustainable

commercial construction, have similar fringe benefits and offer comparable salary increases. CPM Construction offers you a

$$20,000$ sign$-$up bonus, while Fudd Associates will give you $$30,000$ after $3$ years in the job. Which offer would you take? Why?

Consider engineering economy principles in your explanation.

Show your work and upload your completed assignment as a Word document to the assignment dropbox.