SOLUTION: Parents wish to have $80000 available for school. The child is 9 years old how much money must be sta aside with a 8% compound semiannually to meet their financial goal when the ch

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Question 1116092: Parents wish to have $80000 available for school. The child is 9 years old how much money must be sta aside with a 8% compound semiannually to meet their financial goal when the child is 18?
Answer by stanbon(75887) About Me  (Show Source):
You can put this solution on YOUR website!
Parents wish to have $80000 available for school. The child is 9 years old how much money must be set aside with a 8% compound semiannually to meet their financial goal when the child is 18?
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A(t) = P(1+(r/n))^(n*t)
80000 = P[1+(0.08/2)]^(2*9)
80000 = P[1.04]^18
P = 80000/[1.04]^18
P = $39490.25
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Cheers,
Stan H.
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