SOLUTION: the equipment will cost $26000 what lump sum should be invested today at 8% compounded semiannually to yield 26000
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Question 207492: the equipment will cost $26000 what lump sum should be invested today at 8% compounded semiannually to yield 26000
Found 2 solutions by Alan3354, stanbon:
Answer by Alan3354(69443) (Show Source): You can put this solution on YOUR website!
the equipment will cost $26000 what lump sum should be invested today at 8% compounded semiannually to yield 26000
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You have to specify when. Next year? In 10 years?
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
what lump sum should be invested today at 8% compounded
semiannually to yield 26000
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A(t) = P(1+(r/n))^(nt)
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26000 = P(1+(0.08/2))^(2t)
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You have two unknown variables, P and t.
You cannot solve for "P" unless you know t.
Cheers,
Stan H.
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