A man buys a small garden tractor. There will be no maintenance costs for the first two years as the tractor gets two years of free maintenance. For the third year, maintenance is estimated at $80. In subsequent years, maintenance costs will increase by $40 per year. How much money would need to be set aside now at 8% interest to pay for the maintenance costs of the tractor for the first six years of ownership? Also Add the cash flow diagram.

Answer rating: 100% (QA)

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