Determine the equivalent uniform monthly cost of owning

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Reference no: EM13974597

An engineering freshman wants to purchase a laptop computer for use during the 5 years that she plans to study engineering at Louisiana Tech University. After looking around a bit, she finds that a well-equipped laptop with software can be purchased for $2,000 and that it should have a market value of approximately $300 if she wants to sell it when she graduates after 5 years. Assume that maintenance and supplies will cost $100 each six months. Use an interest rate of 12%, compounded monthly, and determine the equivalent uniform monthly cost of owning and operating the computer.

Reference no: EM13974597

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