How to solve using a financial calculator
Don West is considering buying a pickup truck at a cost of $30,000. After keeping the truck for four years, he is hoping to get $10,000. He estimates that the insurance, property tax, and maintenance costs will be $2,000 in year 1 and gradually increase every year by $1,000. The equivalent uniform annual cost of this truck at a 9% interest rate is ____________.
a. $9,177
b. $8,500
c. $10,467
d. $9,612