the material on engineering economics 2

%% A. Inflation Analysis on College Costs

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i = 0.03; % 3% annual average inflation

P = 3.5; % Annual cost in 1980 (k$)

n = 40; % Years from 1980 to 2020

Fi = P*(1+i)^(n) % Projected annual cost based on inflation

Fa = 30; % Actual annual cost in 2020 (k$)

ia = (Fa/P)^(1/n) - 1; % Effective average inflation rate for annual college costs

iap = ia*100 % Effective average inflation rate in percent

%% B. Retirment Savings Comparison of 1 Fred, 2 Wilma, 3 Barney, 4 Betty, 5 Dino

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i = 0.1 % 10% annual interest compounded annually

N = [ 30 35 40 45 45 ]; % Years invested prior to age 65

n = [ 20 20 15 10 45 ]; % Years providing deposits

A = [ 10 7.5 5 5 2 ]*1e-3; % Annual deposit to retirement (M$)

disp(' Fred Wilma Barney Betty Dino in M$')

F = A.*( ( (1+i).^(n) - 1 ) / i ).*(1+i).^(N-n)

%% C. Loan Calc in k$

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P = 25 % Loan amount in k$

i = 0.07/12 % loan interest rate for 7% interest with monthly payments

n = 10*12 % Term is 10 years with monthly payments

FoP = (1+i)^n; % F/P equation

A = P*( ( i*FoP ) / ( FoP - 1 ) ) % Monthly Payments

Ci = n*A - P % Cumulative interest paid (no time value adjustment)