Tang has just bought a house. She would like to set aside a fund to cover all future expected maintenance cost for the house. The landscape maintenance cost is,$1,000 per year. The electrical and power maintenance cost is $2,000 every three years. The structural and painting maintenance cost is $10,000 every 5 years. Assume the house has an indefinite service life, and the fund is placed in an account that will pay 2% interest compounded annually. How large of a fund should Tang set aside now to cover all future maintenance cost? a. $3,576 c. $178,780 b. $3,816 d. $190,780

Tang has just bought a house. She would like to set aside a fund to cover all future expected maintenance cost for the house. The landscape maintenance cost is,$1,000 per year. The electrical and power maintenance cost is $2,000 every three years. The structural and painting maintenance cost is $10,000 every 5 years. Assume the house has an indefinite service life, and the fund is placed in an account that will pay 2% interest compounded annually. How large of a fund should Tang set aside now to cover all future maintenance cost? a. $3,576 c. $178,780 b. $3,816 d. $190,780

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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