# Equivalent uniform annual cost

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Your County is planning to build a park. The initial cost for the park will amount to $6,500,000. Annual maintenance and repairs will amount to:

$25,000 for each of the first five years,

$30,000 for each of the next ten years and,

$35,000 for each of the next five years.

In addition, a major overhaul costing $500,000 will be required at the end of the tenth year.

a) Use a constant interest rate of 5% and determine the equivalent uniform annual cost for a 20-year period.

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#### Solution Summary

The solution explains how to calculate the equivalent uniform annual cost.

$2.49