Please help? Thanks and show how to so I know for later on. Thank you! :D

Keisha's parents want to save $20,000 in her college savings account over the next 15 years. They have $8,000 to use as an initial deposit. What simple annual interest rate do they need to meet their goal? Round your answer to the nearest tenth.

A.) 12%
B.) 10%
C.) 2.7%
D.) 2.5%

Question

Please help? Thanks and show how to so I know for later on. Thank you! :D

Keisha's parents want to save $20,000 in her college savings account over the next 15 years. They have $8,000 to use as an initial deposit. What simple annual interest rate do they need to meet their goal? Round your answer to the nearest tenth.


A.) 12%
B.) 10%
C.) 2.7%
D.) 2.5%

anonymous · Answer

"Simple interest is calculated  on  the original principal only"

interest rate = x , after 1 year they gain 8000x , and they do this for 15 years so:

15(8000x) = 20000
120000x = 20000
x = 20000/120000
= 2/12
=1/6 which is 16.7% .. unless i have made an error somewhere or misinterpreted your question..

anonymous · Answer

Thank you so much!

anonymous · Answer

Do I still need to round? 16.7 isn't a choice?

anonymous · Answer

that is why im confused, ill ask on chat for someone to check my working

anonymous · Answer

Okay thank you for all your help :D

cwrw238 · Answer

i've checked out eigens working - looks fine to me