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Parents wish to have $160,000 available for a​ child's education. If the child is now
7 years​ old, how much money must be set aside at 6 % compounded semiannually to meet their financial goal when the child is​ 18?

Respuesta :

Aliwohaish12
A=p (1+I/k)^kn

A future value 160000
p present value ?
I interest rate 6/100=0.06
K compounded semiannual 2
T time 18-7=11years

160000=p (1+0.06/2)^(2×11)
Divide each side by (1+0.06/2)^(2×11)
P=160,000÷(1+0.06÷2)^(2×11)
P=83,502.8

Hope it helps:-)

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