Keisha's parents want to save twenty thousand dollars in her college savings account over the next fifteen years. They have eight thousand dollars 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)two point five percent

B)two point seven percent

C)ten percent

D)twelve percent

Question

Keisha's parents want to save twenty thousand dollars in her college savings account over the next fifteen years. They have eight thousand dollars 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)two point five percent

B)two point seven percent

C)ten percent

D)twelve percent

anonymous · Answer

@ranga

ranga · Answer

Principal P = 8000
Number of years n = 15
Let interest rate be r percent per year
Final Amount A = 20000

The formula to use is: A = P( 1 + r * t )

Plug in the values:  20000 = 8000(1 + 15r)

Solve for r.

ranga · Answer

what did you get for r?  If you need further help in solving for r just let me know.