Parents wish to have $80,000 available for a child's education. If the child is now 8 years old, how much money must beset aside at 7% compounded semiannually to meet their financial goal when the child is 18?Click the icon to view some finance formulas.The amount that should be set aside is $ ☐(Round up to the nearest dollar.)FormulasIn the provided formulas, A is the balance in the account after t years, P is theprincipal investment, r is the annual interest rate in decimal form, n is the numberof compounding periods per year, and Y is the investment's effective annual yieldin decimal form.ntA=P(1+1)AP =A = PertntrY = (1+)-1nPrintDone- X

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Answered: Parents wish to have $80,000 available…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA3: Time Value Of Money

Section: Chapter Questions

Problem 5CE

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