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? 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) A P = A = Pert nt r Y = (1+)-1 n Print Done - X
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? 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) A P = A = Pert nt r Y = (1+)-1 n Print Done - X
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
ChapterM: Time Value Of Money Module
Section: Chapter Questions
Problem 4MC: Refer to the present value table information on the previous page. What amount should Brett have in...
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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?
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)
A
P =
A = Pert
nt
r
Y = (1+)-1
n
Print
Done
- X](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F72d5517e-dc58-4c51-b43e-bc1b9dd30f18%2F4b345249-c88d-43d8-a294-a5621d86c3a6%2Fuqgfvkr_processed.png&w=3840&q=75)
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?
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)
A
P =
A = Pert
nt
r
Y = (1+)-1
n
Print
Done
- X
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