Math Problem Statement
Kinko store needs to buy new copying machines in 6 years for a total cost of $14000. How much should be deposited now in order to have enough money to pay for the machines? Suppose the interest rate is 10% compounded semi-annually.
Solution
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Math Problem Analysis
Mathematical Concepts
Compound Interest
Present Value
Exponential Growth
Formulas
PV = FV / (1 + r/n)^(nt)
Future Value (FV)
Present Value (PV)
Compound Interest Formula
Theorems
Compound Interest Theorem
Suitable Grade Level
Grades 10-12
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