1. The maintenance on a machine is expected to be $155 at the end of the first year, then increasing by $35 each year for the next 7 years. What sum of money would need to be set aside now to pay the maintenance for the 8-year period? Assume 6% interest.
2. Consider again the situation in question 1a. We wish now to know the uniform annual equivalent maintenance cost. What is the equivalent A for the maintenance costs.