How much should andrew deposit in the bank now

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Andrew has purchased a new car. He wishes to set aside enough money in a bank account to pay the maintenance for the first 5 years. It has been estimated that the maintenance cost of a car is as follows:

Assume the maintenance costs occur at the end of each year and that the bank pays 5% interest. How much should Andrew deposit in the bank now?

Year 1 2 3 4 5

Maintenance Cost $ 130 150 170 190 210

Reference no: EM131295211

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