Question
Asked Oct 31, 2019
14) Southwest Dry Cleaners believes that it will need new equipment in 5 years. The equipment will cost $26,000.
What lump sum should be invested today at 6% compounded semiannually, to yield $26,000?
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14) Southwest Dry Cleaners believes that it will need new equipment in 5 years. The equipment will cost $26,000. What lump sum should be invested today at 6% compounded semiannually, to yield $26,000?

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Expert Answer

Step 1

Recall the follow...

nt
A = P1
п
where A is the amount after t years
P is the principal amount
r is the interest rate
n is the number of terms in 1 year
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nt A = P1 п where A is the amount after t years P is the principal amount r is the interest rate n is the number of terms in 1 year

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