The first-year maintenance cost for a new automobile is estimated to be $100, and it increases at a uniform rate of 10% per year. Using an 8% interest rate, calculate the present worth of cost of the first 5 years of maintenance. Select one: O a. $620.56 O b. $380.24 O c. $480.42 O d. $550.24

The first-year maintenance cost for a new automobile is estimated to be $100, and it increases at a uniform rate of 10% per year. Using an 8% interest rate, calculate the present worth of cost of the first 5 years of maintenance. Select one: O a. $620.56 O b. $380.24 O c. $480.42 O d. $550.24

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

The first-year maintenance cost for a new automobile is estimated to be $100, and it increases at a uniform rate of 10% per year. Using an 8% interest rate, calculate the
present worth of cost of the first 5 years of maintenance.
Select one:
O a. $620.56
O b. $380.24
Oc $480.42
O d. $550.24
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