document.write( "Question 855111: Parents wish to have $130,000 available for a child's education. The child is 5 years old now. How much money must be set aside at 3% compounded semiannually to meet the final goal when the child is 18? \n" ); document.write( "

Algebra.Com's Answer #515138 by ankor@dixie-net.com(22740) $\"\"$ $\"About$

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Parents wish to have $130,000 available for a child's education.
\n" ); document.write( " The child is 5 years old now.
\n" ); document.write( " How much money must be set aside at 3% compounded semiannually to meet the final goal when the child is 18?
\n" ); document.write( ": The compound interest formula: A = p*(1+ $\"r%2Fn\"$ )^nt; where
\n" ); document.write( "A = Accumulated amt after t time
\n" ); document.write( "P = Initial amt
\n" ); document.write( "r = rate of interest in decimal form
\n" ); document.write( "n = number of time compounded each year
\n" ); document.write( ":
\n" ); document.write( "t = 13 yrs; Find P
\n" ); document.write( "P * (1 + $\".03%2F2\"$ )^(2*13) = 130000
\n" ); document.write( "P * (1.015^26) = 130000
\n" ); document.write( "P * 1.4727 = 130000
\n" ); document.write( "p = $\"130000%2F1.4727\"$
\n" ); document.write( "P = $88,273.24 investment required \n" ); document.write( "

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