It is estimated that the annual maintenance cost of a statue erected in front of a public building in a state capital would be $2,500. Assuming an interest rate of 4% year compounded quarterly, determine the capitalized cost for maintaining the statue.

The capitalized cost for maintaining the statue would be $67,380.46. This calculation is done by using the formula for present value of an annuity, which is: PV = A * (1 - (1+r)^-n) / r where PV is the present value, A is the annual maintenance cost, r is the interest rate per period (in this case, quarterly), and n is the number of periods (in this case, 20 years, or 80 quarters). Plugging in the values, we get: PV = 2,500 * (1 - (1+0.04/4)^-80) / (0.04/4) = $67,380.46 This means that if the government were to put aside $67,380.46 now, and invest it at 4% compounded quarterly, they would be able to cover the annual maintenance cost of the statue for the next 20 years. This is useful for budgeting purposes and ensuring that there are enough funds set aside to maintain the statue.