A transportation agency is purchasing 350 electric trucks cars to replace their maintenance trucks and 100 electrie SUV's to replace current petrol vehicles. Each electric truck will cost $500,000 and...

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Extracted text: A transportation agency is purchasing 350 electric trucks cars to replace their maintenance trucks and 100 electrie SUV's to replace current petrol vehicles. Each electric truck will cost $500,000 and will have a service life of 35 years. Each SUV will cost $150,000 and will have a service life of 35 years as well. A transportation agency plans to issue a bond to obtain money for the purchase of electric vehicles. Assuming interest of 5% and a 20-year term, what amount must be invested annually in a sinking fund paying 7% to accumulate enough money to pay off the bond after 20 years? What is the total annual cost of the bond?