Che-Che bought his brother a laptop 5 years ago which has a cost of around 25,000PhP. The laptop’s life span will last until 5 years. She has a friend which is a computer technician who advised her that the laptop’s life span could extend until 10 years if she could spend semi-annual maintenance of 100Php with a 10Php increase rate starting the next period of maintenance inspection. How much is the total future cost assuming that the money will have a rate of 2% compounded semi-annually if she decided to enjoy using her laptop beyond the expected life span upon purchasing? Please show clear written solution (because sometimes when the solution is typed here, the solution becomes confusing and hard to read) and cash flow diagram.
Che-Che bought his brother a laptop 5 years ago which has a cost of around 25,000PhP. The laptop’s life span will
last until 5 years. She has a friend which is a computer technician who advised her that the laptop’s life span could
extend until 10 years if she could spend semi-annual maintenance of 100Php with a 10Php increase rate starting
the next period of maintenance inspection. How much is the total future cost assuming that the money will have
a rate of 2% compounded semi-annually if she decided to enjoy using her laptop beyond the expected life span
upon purchasing? Please show clear written solution (because sometimes when the solution is typed here, the solution becomes confusing and hard to read) and cash flow diagram. I give my appreciation. In advance :)
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