Question: 1a The maintenance on a machine is expected to be $155 at the end of the first year, then increasing by $35 each year for

1a The maintenance on a machine is expected to be $155 at the end of the first year, then increasing by $35 each year for the next 7 years. What sum of money would need to be set aside now to pay the maintenance for the 8-year period? Assume 6% interest.

1b. Consider again the situation in question 1a. We wish now to know the uniform annual equivalent maintenance cost. What is the equivalent A for the maintenance costs.

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