Great dish believes that it will need new equipment in 8 years. the equipment will cost $26,000. what lump sum should be invested today at 12%, compounded semiannually, to yield $26,000?

$ 10,234.80 should be invested.

Step-by-step explanation:

Since, the amount formula in compound interest,

Where, P is the principal amount,

r is the annual rate,

n is the number of period in a year,

t is the number of years,

Here, A = $ 26,000, r = 12% = 0.12, t = 8 years,

n = 2  ( number of semiannual in a year = 2 ),

By substituting the values,

Hence, $ 10,234.80 should be invested.

$9.41

step-by-step explanation: