Engineering Board Exam Reviewer · Uniform Gradient Series · medium
Maintenance cost is P2,000 at the end of year 1 and increases by P500 each year for 8 years. At 8% interest, find the equivalent uniform annual cost.
- P2,000
- P3,549.26
- P1,549.26
- P3,346.83
Answer
B. P3,549.26
Solution
A=A1+G(A/G,i,n) with (A/G,8%,8)= 1i-n/(1+i)n-1=3.0985. So A=2,000+500(3.0985)=P3,549.26.
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