Engineering Economics

Elaborate nominal and effective interest rate with a suitable example. A new machine is expected to cost Rs. 6,000 and have a life of 5 years. Maintenance costs will be Rs. 1,500 the first year, Rs. 1, 700 the second year, Rs. 1, 900 the third year, Rs. 2,100 the fourth year, and Rs. 2,300 the fifth year. How much should be deposited in a fund that earns 9% per year, compounded monthly, in order to pay for this machine?