It is estimated that the maintenance cost on a used car will be $250 the first...
It is estimated that the maintenance cost on a used car will be $250 the first year. Each subsequent year, the maintenance cost will increase by $100. At an interest rate of 4.0% per year, what is the equivalent equal uniform annual cost of maintaining the car for its 7 years ownership?
Homework Answers
equivalent equal uniform annual cost of maintaining the car = 250 + 100 * (A/G, 4%,7)
= 250 + 100 * 2.843318
= 534.33
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