Question $16$: You are planning to buy a car for $$25,000$ today and its running costs will be

$$5,000$ per annum paid in arrears. After six years the car will be worthless and have no

salvage value. Your cost of funds is $5\%$ p$.$a$.$

The equivalent annual cost $($EAC$)$ of this car is closest to:

$($a$)$ $$4,339$

$($b$)$ $$5,000$

$($c$)$ $$7,412$

$*($d$)$ $$9,925$

$-->$ can you show the working out