Year Maintenance Cost 1 $120 2 150 180 4 210 5 240

SWFT Individual Income Taxes
43rd Edition
ISBN:9780357391365
Author:YOUNG
Publisher:YOUNG
Chapter7: Deductions And Losses: Certain Business Expenses And Losses
Section: Chapter Questions
Problem 40P
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Andrew has purchased a new car. He wishes to set aside enough money in a bank account to pay the maintenance for the first 5 years. It has been estimated that the maintenance cost of a car is given in the table.Assume the maintenance costs occur at the end of each year and that the bank pays 5% interest. How much should Andrew deposit in the bank now?

Year Maintenance Cost
1
$120
2
150
180
4
210
5
240
Transcribed Image Text:Year Maintenance Cost 1 $120 2 150 180 4 210 5 240
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