Parents wish to have $80,000 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 whenthe child is 18?The amount that should be set aside is ? 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.ntAA = P+P =A = PertntY = (1+ ±)-1-×

Step 1: Given Value for Calculation Compound = Semiannually = n = 2Future Value = fv =…

Formulas In the provided formulas, A is the balance in the account after t years, P is the principal investment, r is the annual interest rate in decimal form, n is the number of compounding periods per year, and Y is the investment's effective annual yield in decimal form. nt A A = P + P = A = Pert nt Y = (1+ ±)-1 - ×