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

A contractor estimates maintenance costs for a new backhoe to be $275 for the first month with a monthly increase of 0.5%. If the annual interest rate is 6%. The contractor is planning to sell it after 4 year. What is the present value of the maintenance cost?

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