# Math Help - Interest Question

1. ## Interest Question

Hey There,

I have a small problem for those able to help.

"A machine is purchased with a $3000 deposit plus payments of$250 at the end of every six months for 6 years. If the is at 8% per year compounded semianually, find the original price of the machine"

The original answer i came up with was $7803.10 But i think I may have gone about it the wrong way. Thanks Storm. 2. Originally Posted by Storm20 "A machine is purchased with a$3000 deposit plus payments of $250 at the end of every six months for 6 years. If the is at 8% per year compounded semianually, find the original price of the machine" The original answer i came up with was$7803.10
But i think I may have gone about it the wrong way.
You sure did

Calculate present value of 12 payments of $250 at 4%; add$3000.