It is estimated that the maintenance cost on a new car will be $40 the first year.

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It is estimated that the maintenance cost on a new car will be $40 the first year. Each subsequent year, this cost is expected to increase by $10. How much would you need to set aside when you bought a new car to pay all future maintenance costs if you planned to keep the vehicle for 7 years? Assume interest is 5% per annum.
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Engineering Economic Analysis

ISBN: 9780195168075

9th Edition

Authors: Donald Newnan, Ted Eschanbach, Jerome Lavelle

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