Question

Southwest Cleaners believes that it will need new equipment in 10 years. The equipment will cost $26,000. What lump sum should be invested today at 8% compounded semi-annually, to yield $26,000?

Answer 1

Let the sum be X. Solve this equation:
X*(1.04)^20 = 26,000

2.1911231 X = 26,000
X = $ 11,866.06

Answer 2

Thanks for your efforts and time.

Answer 3

Thanks for your time :-)