The maintenance cost on a machine is expected

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The maintenance cost on a machine is expected to be $5,000 during the first year, $6,000 during the second year, and to increase $500 each year for the following 9 years. What present sum of money should be set aside now to pay for the required maintenance cost over the eleven years period? Assume interest rate equal to 8% compounded annually.

Reference no: EM131044173

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