Determine the present worth of these maintenance expenses using each of two different methods. This will serve as a check on your work.

Urban infrastructures that support a community are sometimes in the news; we seldom think about them except when there is a disruption of service. A small city has just replaced a water storage tank and associated feeders from it throughout the community. It is estimated that the annual service requirements will be $30,000 the first year, with $ 15,000 increases in each subsequent year for 9 years. The community's time value of money is 2%