Solve each of the below problems using the FE handbook document on Engineering Economics. Show your

work, including the correct symbols for each calculation and, for any problems that do not have

corresponding values in the tables, the formula values. Show the multiple$-$choice letter you would select for

each problem at the end of your solution.

$1.$ At $6\%$ effective annual interest, approximately how much will be accumulated if $$1000$ is invested for

ten years?

a$.$ $$560$

b$.$ $$790$

c$.$ $$1600$

d$.$ $$1800$

$2.$ At $6\%$ effective annual interest, approximately how much should be deposited at the start of each

year for five years to accumulate $$2000$ on the date of the last deposit?

a$.$ $$350$

b$.$ $$470$

c$.$ $$510$

d$.$ $$680$

$3.$ An old covered wooden bridge can be strengthened at a cost of $$9000,$ or it can be replaced for

$$40,000.$ The present salvage value of the old bridge is $$13,000.$ It is estimated that the strengthened

bridge will last for $20$ years, will have an annual cost of maintenance of $$500,$ and will have a salvage

value of $$10,000$ at the end of $20$ years. The estimated salvage value of the new bridge after $25$

years is $$15,000.$ Maintenance for the new bridge would cost $$100$ annually. The effective annual

interest rate is $8\%.$ What is the annual cost saving if the bridge is strengthened instead of replaced?

a$.$ $$1200$

b$.$ $$2400$

c$.$ $$2500$

d$.$ $$3600$