Answers to Sample Engineering Econ Problem

 

a)

A20 = $1,302

Go with 20 years b/c closest to budget value without going over.

 

b)

A20 * 20 years * 12 months/yr = $312,415

A30 * 30 years * 12 months/yr = $415,213

Therefore saves $102,798 over the life of the loan.