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.) 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?1 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) **1+P =1 +AnA = PertntY= (1 + 1)" -1PrintDonecheck

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.) 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?1 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) **1+P =1 +AnA = PertntY= (1 + 1)&#34; -1PrintDonecheck

Accepted Answer

Given information, Target amount (A) = $80,000Annual interest rate (r) = 7% or 0.07Compounding…