Problem $2$

$(2$ points$).$ :

You are tasked to calculate the economic equivalent present value of an equipment's major maintenance costs. The equipment needs a major maintenance every $5$ years and the cost is $$7,000.$ The use life of the equipment is $60.$ The annual interest rate is $12\%.$

If you are using the $5-$year scale of your analysis, what is the effective $5-$year interest rate? $($Round up to one decimal point$)$

If you are using the yearly scale in your analysis, what is the value of A and $N$ in your equation $P=A(\frac{P}{A},i\%,N)?$ Please only input the numerical values of the answers in the answer box