How to solved this problem. It driving me nuts, appreciate it.

1.A company buys a pickup truck for $25,000. Each year the truck is in service the trade in value decreases by 20%. Maintenance on the truck will run $2,000 per year while increasing by 15% each year it is in service. The company uses an MARR of 12%. Find the Annual Equivalent Cost for the second year.

A.$9386.87

B.$5325.30

C.

$7245.30

D.

$6325.30