How much should craig charge for a maintenance contract

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Craig Jones owns a computer sales and repair business. He has decided to sell maintenance contracts with new computers that cover all repairs needed within three years of purchase. On average, each new computer needs $100 in repairs and maintenance per year during the first three years it is operated. (The $100 is the customer's cost for maintenance, including parts, labor, and Craig's profit.) How much should Craig charge for a maintenance contract if the interest rate is 13%?

Reference no: EM132419833

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