Parents wish to have $140,000 available for a child's education. If the child is now 3 years old, how much money must be set aside at 5% compounded semiannually to meet their financial goal when the child is 18?The amount that should be set aside is $ (Round up to the nearest dollar.) Parents wish to have $140,000 available for a child's education. If the child is now 3 years old, how much money mustbe set aside at 5% compounded semiannually to meet their financial goal when the child is 18?Click the icon to view some finance formulas.The amount that should be set aside is $ ☐(Round up to the nearest dollar.)FormulasIn the provided formulas, A is the balance in the account after t years, P is theprincipal investment, r is the annual interest rate in decimal form, n is the numberof compounding periods per year, and Y is the investment's effective annual yieldin decimal form.A=P(1+1)ntnAP =A = PertntrY = (1+)-1PrintDone- X-

Question

Parents wish to have $140,000 available for a​ child's education. If the child is now 3 years​ old, how much money must be set aside at 5% compounded semiannually to meet their financial goal when the child is​ 18?The amount that should be set aside is ​$ (Round up to the nearest​ dollar.) Parents wish to have $140,000 available for a child's education. If the child is now 3 years old, how much money mustbe set aside at 5% compounded semiannually to meet their financial goal when the child is 18?Click the icon to view some finance formulas.The amount that should be set aside is $ ☐(Round up to the nearest dollar.)FormulasIn the provided formulas, A is the balance in the account after t years, P is theprincipal investment, r is the annual interest rate in decimal form, n is the numberof compounding periods per year, and Y is the investment's effective annual yieldin decimal form.A=P(1+1)ntnAP =A = PertntrY = (1+)-1PrintDone- X-

Accepted Answer

Step 1:We have to calculate the amount that should be set aside. It means we have to calculate the…