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13 November, 22:43

Tabby Soft 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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  1. 13 November, 22:55
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    26000=p (1+0.06/2) ^ (2*5)

    Solve for p

    P=26,000: (1+0.06:2) ^ (2*5)

    P=19,346.44
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