Estimate the maintenance cost on a new car

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It is estimated that the maintenance cost on a new car will be $400 the first year. Each subsequent year, this cost is expected to increase by $100. How much would you need to set aside when you bought a new car to pay all future maintenance cost if you planned to keep the vehicle for 7 years? Assume interest is 5% pear.

Reference no: EM13207326

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