# An engineer has received \$10 000 from his employer for a patent disclosure. He has decided to invest the money in

An engineer has received \$10 000 from his employer for a patent disclosure. He has decided to invest the money in

a 15-year savings certificate that pays 8% per year, compounded annually. What will be the final value of his investment in terms of today’s dollar, if the inflation continues at the rate of 6% per year?

Given dataPV = \$10000t =15inflation i= 61. = 0,068 = 0.08Future value , F V = PV ( Its )FV = 10000 * (140.08)’317 21 . 69FV = \$ 31721. 69final value of his investment in terms oftoday’s…

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