Question $7$

An engineer has recently purchased a new piece of equipment to use in analyzing geological formations. The

equipment has no maintenance costs the first year due to a one year's free maintenance warranty. In the second year, it

is expected to cost $$20$ to maintain the equipment and in subsequent years the cost of maintenance will increase by $$20$

per year $($i$.$e$.$ maintenance cost is $$40$ in year three, $$60$ in year four, and so on$).$ Approximately what amount must be

set aside now at $8\%$ interest to pay the cost of maintaining the equipment over the first six years of ownership?

$$300$

$$289$

$$194$

$$348$

$$211$