Question

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-2.5%
B-2.7%
C-10%
D-12%

Answer 1

So to solve this, we convert them all into decimals by moving the point two places to the left and get
A- 0.025; B-0.027; C-0.1; D- 0.12
We then multiply all of these by $8,000 bc that's their initial investment. Then that answer we get will be mulitplied by 15, cause it's 15 years of getting interest. Then, we add that with the 8,000 and see if we get 20,000.
When we do that to A, it doesn't work, so that's off the list.
Now all we have is B,C,D. By process of elimination, since A was so way off, B isn't going to be it. Now all we have left is C & D.
We do 8000(0.1)=800. Now we times this by 15, and get 12000/
12000+8000=20000 so we figure out that C is our answer :)

Answer 2

thanks MEDAL YOU ROCK

Answer 3

Lol no prob. :)