A man is buying a small garden tractor. There will be no maintenance cost during the first 2 years because the tractor is sold with 2 years free maintenance. For the third year, the maintenance is estimated at $80. In subsequent years the maintenance cost will increase by $40 per year. How much would need to be set aside now at 8% interest to pay the maintenance costs on the tractor for the first 6 years of ownership?

A man is buying a small garden tractor. There will be no maintenance cost during the first 2 years because the tractor is sold with 2 years free maintenance. For the third year, the maintenance is estimated at $80. In subsequent years the maintenance cost will increase by $40 per year. How much would need to be set aside now at 8% interest to pay the maintenance costs on the tractor for the first 6 years of ownership?

Refrigeration and Air Conditioning Technology (MindTap Course List)

8th Edition

ISBN:9781305578296

Author:John Tomczyk, Eugene Silberstein, Bill Whitman, Bill Johnson

Publisher:John Tomczyk, Eugene Silberstein, Bill Whitman, Bill Johnson

Chapter2: Matter And Energy

Section: Chapter Questions

Problem 21RQ

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