Construction equipment has a cost today of $40,000. If its cost has increased by only the inflation rate of 6% per year when the market interest rate has been 10% per year, what was its cost 10 years ago? Given: F = $40,000         n = 10 years f = 6%        i'f = 10%

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this is about Introduction to Decisions Under Certainty on engineering economics subject.. please show your solution.

Construction equipment has a cost today of $40,000. If its cost has increased by only
the inflation rate of 6% per year when the market interest rate has been 10% per year,
what was its cost 10 years ago?
Given:

F = $40,000         n = 10 years
f = 6%        i'f = 10%

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