Question: 4-94 A contractor estimates maintenance costs for a new backhoe to be $275 for the first month with a monthly increase of 0.5%. The contractor

4-94 A contractor estimates maintenance costs for a new backhoe to be $275 for the first month with a monthly increase of 0.5%. The contractor can buy a 4-year maintenance contract for $18,500 at any point. If the contractis purchased at the same time as the backhoe 1s purchased, the dealer has offered a 10% discount. Use i =0.75% permonth. What should the contractordo

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