Problem 3 A new machine is expected to cost $17500 and have a life of 7 years. Maintenance costs will he. $2300 per y and seven machine and its maintenance, how much should be budgeted and deposited in a fund that ear the first year, second year, third year and up until the fifth year, while in the sixth th year, the maintenance costs are $2500 and $2700 respectively. To pay for the a) 24% per year compounded quarterly b) 30% per year compounded trannually (every four months), NB: without considering the payment period; try and draw the cash flow diagram Hints: Compound Interest Formula CI-Principal (1 + i)n-Principal SI= Principal x Time period x Rate