Parents wish to have $140,000 available for a child's education. If the child is now 10 years old, how much money must be set aside at 5% compounded semiannually to meet their financial goal when the child is 18?

Parents wish to have $140,000 available for a child's education. If the child is now 10 years old, how much money must be set aside at 5% compounded semiannually to meet their financial goal when the child is 18?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question

Parents wish to have $140,000 available for a child's education. If the child is now 10 years old, how much money must be 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.)

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