Buying a small garden tractor

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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 repairs. The third year the maintenance is estimated at 80. Subsequent years will increase by $40 per year. How much would need to be set aside at 8% interest to pay maintenance costs on the tractor for the first 6 years of ownership?

Reference no: EM131005021

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