Question: A machine costs $ 2 7 0 , 0 0 0 and has a life of 1 2 years. The machine will be under total

A machine costs $270,000 and has a life of 12 years. The machine will be under total warranty for 3 years. In the 4th year, the maintenance cost is estimated to be $3500, and increases by $1750 each year till the 12th year. What amount will the company have to put aside at 6% interest per annum compounded yearly for the maintenance?

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