1. The Highway Department expects the cost of maintenance for a piece of heavy construction equipment to be $3,000 in year 1, to be $3,500 in year 2, and to increase annually by $500 through year 8. At an interest of 6% per year, determine the present worth of 8 years of maintenance costs.

a. 30,333

b. 29,932

c. 28,550

d. 34,633