# Chapter 2

## Supplemental Problems

### Time Value of Money

Time Value of Money

**TVM 1.1** A $25,000 initial investment is made for a new engineering project. Each subsequent year after, another $5,000 is invested. The rate of return for the project is estimated to be 16% (annually). What is the projected future value of this investment scenario after 12 years?

**ANSWER:** $302,651

**TVM 1.2** New Problem