Problem
The municipality of an eastern province has worked on one of the bridge refurbishments. At a recent meeting, the engineers estimated that a total of SR400,000 will be deposited at the end of next year into an account for the repair of the old bridge in the province area. Further, they estimate the deposits will increase by SR150,000 per year for only 12 years thereafter, then cease. Determine the equivalent present worth if these city funds earn interest at a rate of 8% per year.