Basics of Engineering Economy 1st Edition by Leland Blank,Anthony Tarquin

Exercise 11

An engineer who is now 65 years old began planning for retirement 40 years ago.At that time, he thought that if he had $ million when he retired, he would have more than enough money to live his remaining life in luxury.If the inflation rate over the 40-year time period averaged a constant 4% per year, what is the constant-value dollar amount of his $ million? Use the day he started 40 years ago as the base year.