Parents wish to have $80,000 available for a child's education. If the child is now 8 years old, how much money must be set aside at 7% compounded semiannually to meet their financial goal when the child is 18? 1 Click the icon to view some finance formulas. The amount that should be set aside is $ (Round up to the nearest dollar.) Formulas In the provided formulas, A is the balance in the account after t years, P is the principal investment, r is the annual interest rate in decimal form, n is the number of compounding periods per year, and Y is the investment's effective annual yield in decimal form. nt A=P (1 + 1) ** 1+ P = 1 + A n A = Pert nt Y= (1 + 1)" -1 Print Done check
Parents wish to have $80,000 available for a child's education. If the child is now 8 years old, how much money must be set aside at 7% compounded semiannually to meet their financial goal when the child is 18? 1 Click the icon to view some finance formulas. The amount that should be set aside is $ (Round up to the nearest dollar.) Formulas In the provided formulas, A is the balance in the account after t years, P is the principal investment, r is the annual interest rate in decimal form, n is the number of compounding periods per year, and Y is the investment's effective annual yield in decimal form. nt A=P (1 + 1) ** 1+ P = 1 + A n A = Pert nt Y= (1 + 1)" -1 Print Done check
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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Question
Parents wish to have $80,000 available for a child's education. If the child is now 8 years old, how much money must be set aside at 7% compounded semiannually to meet their financial goal when the child is 18?
The amount that should be set aside is
$
(Round up to the nearest dollar.)
Transcribed Image Text:Parents wish to have $80,000 available for a child's education. If the child is now 8 years old, how much money must be
set aside at 7% compounded semiannually to meet their financial goal when the child is 18?
1 Click the icon to view some finance formulas.
The amount that should be set aside is $
(Round up to the nearest dollar.)
Formulas
In the provided formulas, A is the balance in the account after t years, P is the
principal investment, r is the annual interest rate in decimal form, n is the number
of compounding periods per year, and Y is the investment's effective annual yield
in decimal form.
nt
A=P (1 + 1) **
1+
P =
1 +
A
n
A = Pert
nt
Y= (1 + 1)" -1
Print
Done
check
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