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The texas highway department expects the cost of maintenance for a particular piece of heavy equipment to be $5000 in year 1, $5,500 in year 2, and amounts increasing by $500 through year 10. At an interest rate of 10% per year, the present worth of the maintenance cost is nearest to:.

Sagot :

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Answer:

The Highway Department expects the cost of maintenance for a piece of heavy construction equipment to be $5000 in year 1, to be $5500 in year 2, and to increase annually by $500 through year 10. At an interest rate of 10% per year, determine the present worth of 10 years of maintenance costs.

Explanation:

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