Mary forgot that the RV needs maintenance and upkeep of the 20 years she owns the RV.
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Question:
Mary forgot that the RV needs maintenance and upkeep of the 20 years she owns the RV. If the annual cost of O&M is $3,000 per year, what is the present value of the maintenance (assume 3% inflation)?
Include PAINFG and the cash flow diagrams.
P = Present value (this value is not used in this problem)
A = Annuity; this is the value that is given in this problem
i = Effective interest rate
n = Number of payments
F = Future value; this is the value that we want to find in this problem (F = ?)
G = Gradient value (this value is not used in this problem)
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