On the first day of each month, IISE DFW will send out a new question testing your knowledge of the topics listed in the IISE Body of Knowledge. Submit your responses, and be eligible for a $100 prize!
Did you know that October’s Puzzlor challenge is still underway? Send us your answer by Saturday, 10/31, to be considered for the prize.
The month following a puzzlor, we will publish a video to our IISE Connect page going over the responses we received and the solution. We hope you find this fun, and informational!
October Puzzlor: Time Value of Money
You decide to invest in a small investment fund. You plan to invest $1,000 into this fund at the end of each year. This fund advertises a 3% interest rate, compounded annually. In year 5, you plan on depositing an additional $1,200 dollars due to an anticipated bonus at work. You will withdraw the funds in year 10.
1. Draw a Cash Flow Diagram for the anticipated investment
2. What is the Future Value of this investment at year 10?
3. What is the Future Value of this investment at year 10, if the interest was compounded monthly?
4. If you decided to invest the same amount of money each year instead of the $1,000 annual deposit plus the one-time deposit of $1,200 in year 5, how much would you deposit each year (compounded annually)?
- To be eligible, you must be a dues-paying member to IISE with affiliation to Dallas-Fort Worth, and/or have affiliation with IISE DFW via IISE Connect (Virtual Members)
Rules of Play
- The contest will run from October 1st, 2020 to September 30th, 2021.
- On the first of each month, a new question will be released to the community.
- A question will be a “textbook” sort of question intended to identify key skills an IE might be responsible for knowing
- Responses may come in the form of an excel spreadsheet (.xls, .xlsx, .xlsm), word document (.doc, .docx), pdf (.pdf), or image(.jpg, .bmp, .png).
- If, for example, you use MATLAB, Python, or any other software to solve the problem, please do not respond with that software’s file type as your answer. These should be converted to one of the above submission options
- Participants will have the entire month to submit their response to email@example.com
- Responses are due 11:59 PM of the last day of the month to be considered for prize eligibility
- Questions will derive from topics included in the IISE Body of Knowledge (BoK)
- Other topics still related to IE will be considered, but primarily, questions will relate to some topic within the BoK.
- One (1) point will be awarded for submitting a response
- One (1) point will be awarded for submitting a correct response
- One (1) point will be awarded for submitting the most innovative response*
- * “Innovative” is subjective and determined by the board. This might be a response that is most appropriately detailed, thorough, unique, most efficient, or uses an unconventional methodology.
At the end of the year, the top 3 members in scoring will each receive a $100 cash prize, to be distributed via check or visa gift card (TBD).