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OpenStudy (anonymous):
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?
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OpenStudy (anonymous):
Use the formula A = p(1+r)^t, where r= rate per year, t = # of years, A= lump sum p= what you want to figure out Keep in mind that you are compounding twice a year, so adjust for that.
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