Local golf course just bought a lawn mowing machine

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Reference no: EM13736528

A local golf course just bought a lawn mowing machine. It comes with 2 yr free maintenance. The manager wants to provide enough money in an 8.00% bank account now (EOY -0) to have a fund out of which he will pay for needed maintenance. At the end of the 1st year after warrantee (EOY 3) he will have to pay $74.89 after which the cost is expected to increase $35.6 each year for 4 yrs(cumulative). How many dollars must be deposited now?

Reference no: EM13736528

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