Problem:
Recently compiled maintenance records reveal the following maintenance cost data:
5 years ago $600
4 years ago $700
3 years ago $ 800
2 years ago $900
Last year $1,000
A maintenance specialist has compiled the maintenance cost data for the current year and the next four years. He figures the maintenance cost this year will be $900 and will increase each year at the rate of $100.
Required:
Question: Compute the equivalent uniform annual cost when the interest rate is 14%.
Note: Please explain comprehensively and give step by step solution.