The maintenance on a machine is expected to be $155 at the end of the first year, and increasing $35 each year for the following seven years. What present sum of money would need to be set aside now to pay the maintenance for the eight-year period? Assume 6% interest.
1. $2,314.31
2. $2,101.32
3. $1,656.99
4. $1,405.96