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alexdok [17]
3 years ago
15

Parents wish to have 160,000 available for a​ child's education. If the child is now 8 years​ old, how much money must be set as

ide at 3 % compounded semiannually to meet their financial goal when the child is​ 18?
Mathematics
1 answer:
Ray Of Light [21]3 years ago
6 0

Answer:

$118,791.2985

Step-by-step explanation:

Given that,

A = 160,000

T = 18 - 8 = 10 years

Rate = 3%

since it is semi annual, n = 2

A = P ( 1 + R/2) ∧ 2T

160000 = P ( 1 + 3/2*100) ∧ 2 * 10

160000 = P ( 1 + 3/200) ∧20

160000 = P( 1 + 0.015) ∧20

160000 = P(1.015)∧20

P= 160000/ (1.015)∧20

P = 160000/ 1.3469

= $118,791.2985

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