Quiz Instructions
This is an extra credit question. Completing this question is optional.
Please note the wording on this problem is a little unclear. Dr. Shelly will pay maintenance for a total of 5
years (so the end of years 5, 6, 7, 8, 9).
services
lery
Question 1
0.3 pts
Professor Shelley is creating a budget for her recently awarded research grant. Her
research requires a heavy-duty generator that has an initial cost of $39135. She
estimates she will need to pay for maintenance on the generator beginning at the end
of year 5. She will pay maintenance costs each year for the next 5 years. At that point,
she will either scrap her research or submit a new research proposal. She estimates
the first year of maintenance will cost $497, with the maintenance costs increasing by
$77 per year for each year after that. How much should she put in her budget for
maintenance costs? She is using a 5% interest rate.
Enter your answer as follows: 1234
Round your answer. Do not use a dollar sign ("$ "), any commas (","), or a decimal
point (".").
