Equivalent uniform annual cost

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Don is considering buying a truck at a cost of $30,000. He is planning to keep the truck for four years and is hoping that the truck will sell for $10,000 at the end of year 4. He estimates that the insurance and maintenance costs will be $2,000 in year 1 and incrementally increase every year by $1,000. The equivalent uniform annual cost of this truck at 9% interest rate is ____________?

Reference no: EM13817997

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