a) Due to technology advances, the cost spent on computer hardware decreases over time. An engineering firm estimates that the hardware cost in year 1 is $10,000, and decreases by $500 per year through year 6. If loans are taken out from a regional bank each year to cover the costs, how much needs to be paid back to the bank at year 6 if the interest rate is 5%?

b) The cost of maintaining roads in Amherst increases over time. Its estimated to be $10,000 in Year 1 and increases by $500 per year through Year 5. What is the equivalent annual cost of the maintenance cost at an interest rate of 6%?