Basics of Engineering Economy 2nd Edition by Anthony Tarquin,Leland Blank

Exercise 7

In an effort to retain troops who are proficient with weapons and who can speak the languages of Middle Eastern countries, the Pentagon offered bonuses of $150,000 to specialized personnel who were near or already eligible for retirement. If 400 enlisted personnel accepted the bonus in year one, 300 in year two, and 600 in year three, what was the equivalent annual cost of the program over the 3-year period at an interest rate of 6% per year