Engineering Economics

A house is expected to have a maintenance cost of $1000 the first year. It is believed that the maintenance cost will increase $500 per year. The interest rate is 6% compounded annually. Over a 10-year period, what will be the approximate effective annual maintenance cost? Match each item to a choice Equivalent Annual Maintenance Cost: Choices: $$3000 $2900 $1900 8 $2600 8 $3800 $3500