Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin

Exercise 38

A design/build engineering company that usually gives year-end bonuses in the amount of $8000 to each of its engineers is having cash flow problems. The company said that although it could not give bonuses this year, it would give each engineer two bonuses next year, the regular one of $8000 plus an amount equivalent to the $8000 that each engineer should have gotten this year. If the interest rate is 8% per year, what will be the total amount of bonus money the engineers should get next year