contractor estimates maintenance costs for a new backhoe to be $225 for the first month with a monthly increase of 0.5%. If the annual interest rate is 6%. The contractor is planning to sell it after 4 year. What is the present value of the maintenance cost? For the same contractor, if it can buy a 4-year maintenance contract with a uniform monthly payment of $310, given the same annual interest rate is 6%, what is the present value of the maintenance contract?

A contractor estimates maintenance costs for a new backhoe to be $225 for the first month with a monthly increase of 0.5%. If the annual interest rate is 6%. The contractor is planning to sell it after 4 year. What is the present value of the maintenance cost? Question 5 5 pts For the same contractor in question 5 , if it can buy a 4-year maintenance contract with a uniform monthly payment of $310, given the same annual interest rate is 6%, what is the present value of the maintenance contract