Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin

Exercise 66

Profi ts from recycling paper, cardboard, aluminum, and glass at a liberal arts college have increased at a constant rate of $1100 in each of the last 3 years. If this year's profi t (end of year 1) is expected to be $6000 and the profi t trend continues through year 5,
a) what will the profi t be at the end of year 5 and b) what is the present worth of the profi t at an interest rate of 8% per year