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Present value of the maintenance

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Show all work.The answer must include PAINFG P = Present value (this value is not used in this problem)

and the cash flow diagrams.

A = Annuity; this is the value that is given in this problem
i = Effective interest raten = Number of payments
F = Future value; this is the value that we want to find in this problem (F = ?)G = Gradient value (this value is not used in this problem)

  1. Mary forgot that the RV needs maintenance and upkeep of the 20 years she owns the RV. If the annual cost of O&M is $3,000 per year, what is the present value of the maintenance (assume 3% inflation)?

Reference no: EM133061494

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