A company expects the cost of equipment maintenance to be $5,000 in year one, $5,500 in year two, and amounts increasing by $500 per year through year 10. At an interest rate of 10% per year, the present worth of the maintenance cost is nearest to A) $38,220 B) $46,660 c) $51,790 D $42,170

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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A company expects the cost of equipment maintenance to be $5,000 in year one, $5,500 in year two, and amounts increasing by
$500 per year through year 10. At an interest rate of 10% per year, the present worth of the maintenance cost is nearest to
A) $38,220
B
$46,660
c) $51,790
D) $42,170
Transcribed Image Text:A company expects the cost of equipment maintenance to be $5,000 in year one, $5,500 in year two, and amounts increasing by $500 per year through year 10. At an interest rate of 10% per year, the present worth of the maintenance cost is nearest to A) $38,220 B $46,660 c) $51,790 D) $42,170
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