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