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Parents wish to have 90000 available for a child's education. If the child is now 6 years old, how much money must be set aside at 3% compounded semiannually to meet their financial goal when the child is 18

 Apr 11, 2020
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Compund Interest Formula: P(1+ r/n)^nt

 

P=Principal

 

r=interest rate, as a decimal.

 

n= number of times applied of a time period.

 

t=time in years

 

90000=P(1+0.03/2)^(2)(12)

 

Aproximately, P=62958.95......

 Apr 11, 2020

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