10) Southwest Dry Cleaners believes that it will need new equipment in 5 years.

Business & Finance
Tutor: None Selected Time limit: 1 Day

10) 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 4% compounded semiannually, to yield $26,000? 

A) $21,329.10 

B) $23,531.54 

C) $23,649.29 

D) $24,611.99

Apr 26th, 2015

A) $21,329.10  derived from  26,000/(1.02)^10   r=.02 as compounding is semiannual and n=5*2=10

Apr 26th, 2015

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Apr 26th, 2015
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Apr 26th, 2015
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