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15 May, 20:55

Southwest Dry Cleaners believes that it will need new equipment in 7 years. The equipment will cost $26,000. What lump sum should be invested today at 6%, compounded semiannually, to yield $26,000?

a.

$ 17,189.06

b.

$ 23,243.29

c.

$ 21,091.71

d.

$ 21,249.90

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Answers (1)
  1. 15 May, 23:45
    0
    A=p (1+i/m) ^mn

    A=26,000: (1+0.06:2) ^ (2*7)

    A=17,189.06
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