Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin

Exercise 61

Income from the mining of mineral deposits usually decreases as the resource becomes more difficult to extract. Determine the future worth in year 10 of a mineral lease that yielded income of $14,000 in years 1 through 4 and then amounts that decreased by 5% per year through year 10. Use an interest rate of 18% per year. Show
a) hand and b) spreadsheet solutions.