Identify the four engineering economy symbols and their values from the following problem statement. Use a question mark with th

Question

2 months ago

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Identify the four engineering economy symbols and their values from the following problem statement. Use a question mark with th

e symbol whose value is to be determined. Thompson Mechanical Products is planning to set aside $150,000 now for possibly replacing its large synchronous refiner motors whenever it becomes necessary. If the replacement is not needed for 7 years, how much will the company have in its investment set-aside account, provided it achieves a rate of return of 11% per year?

Engineering

1 answer:

choli [298] · Answer 1 · 2026-02-28T13:38:10+03:00

Answer:

The company's investment set-aside account will amount to $311,424.

Explanation:

To figure out how much the company will possess after 7 years with an annual interest rate of 11%, we need to calculate the initial amount followed by an 11% increase, repeating this process for seven years:

Year 0: 150,000

Year 1: 150,000 x 1.11 = 166,500

Year 2: 166,000 x 1.11 = 184,815

Year 3: 184,815 x 1.11 = 205,144.65

Year 4: 205,144.65 x 1.11 = 227,710.56

Year 5: 227,710.56 x 1.11 = 252,758.72

Year 6: 252,758.72 x 1.11 = 280,562.18

Year 7: 280,562.18 x 1.11 = 311,424