Activity I: A young engineer decides to save $240 per year toward retirement in 40 years. a. If he invests this sum at the end of every year at 9%, then how much will be accumulated by retirement time? b. If by astute investing the interest rate could be raised to 12%, then what sum could be saved? c. If he deposits one fourth of this annual amount each quarter ($60 per quarter) in an interest bearing account earning a nominal annual interest rate of 12%, compounded quarterly, how much could be saved by retirement time? d. In part (c), then what annual effective interest rate is being earned? Activity II: Maurice Micklewhite has decided to replant his garden. Show him what the cost is of making an erroneous decision at various stages of the project, starting with conceptual design and ending with the ongoing maintenance of the garden. The assignment is to answer the question provided above in essay form. This is to be in narrative form and should be as thorough as possible. Bullet points should not to be used. The paper should be at least 1.5 – 2 pages in length, utilizing at least one outside scholarly or professional source related to project management. The textbook should also be utilized.
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