Results 1 to 2 of 2

Math Help - Interest Question

  1. #1
    Newbie
    Joined
    Nov 2008
    Posts
    19

    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.
    Follow Math Help Forum on Facebook and Google+

  2. #2
    MHF Contributor
    Joined
    Dec 2007
    From
    Ottawa, Canada
    Posts
    3,170
    Thanks
    71
    Quote Originally Posted by Storm20 View Post
    "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.
    Follow Math Help Forum on Facebook and Google+

Similar Math Help Forum Discussions

  1. Calculate interest rate based on interest in parcels
    Posted in the Business Math Forum
    Replies: 1
    Last Post: February 17th 2011, 10:38 PM
  2. Interest question
    Posted in the Algebra Forum
    Replies: 9
    Last Post: November 22nd 2009, 08:52 AM
  3. One Question on interest.
    Posted in the Algebra Forum
    Replies: 3
    Last Post: February 23rd 2009, 06:44 PM
  4. interest question
    Posted in the Business Math Forum
    Replies: 1
    Last Post: January 19th 2008, 01:30 PM
  5. Interest question HELP
    Posted in the Business Math Forum
    Replies: 1
    Last Post: June 1st 2007, 09:21 PM

Search Tags


/mathhelpforum @mathhelpforum