Let the amount deposited each year be P
Number of years = n = 10
Total Amount required after 10 years = FV = number of units * cost per unit = 20*1500 = $30000
Interest rate = r = 6%
Hence, FV = P(1+r)n-1 +....+ P(1+r)2 + P(1+r) + P = P[(1+r)n -1]/r
=> 30000 = P[(1+0.06)10 -1]/0.06
=> P = 30000*0.06/[(1+0.06)10 -1] = 2276.04
Hence, he should keep away $2,276.04 each year to save for replacement of 20 air conditioners after 10 years
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