1. A house is expected to have a maintenance cost of $1000 the first year. It is believed that the maintenance cost will increase by $500 every year. The interest rate is 6% compounded annually. What will the equivalent uniform annual maintenance cost be over a 10-year period?
2. A company wants to borrow a loan to build a new production/warehouse facility. If the company offers to repay the loan with $60,000 in year 1 and the amounts increasing by $10,000 each year after through year 5, how much can the company borrow now at an interest rate of 10% per year?