Question

Maggie has $14,100 to invest, and wishes to gain $4,000 in interest over the next eight years. Approximately what is the minimum simple interest rate Maggie needs to reach her goal? a. 2.89% b. 3.55% c. 4.95% d. 5.18%

Answer 1

Answer:

b. 3.55%

Step-by-step explanation:

It is given that:

• The principal is 14,100 $
• The simple interest amount is 4,000$
• The time is 8 years.

It is required to find the simple interest rate.

Simple interest amount = principal amount * rate * time

4000 = 14100* rate *8

rate = 4000/(14100*8)

rate = 0.0355*100% = 3.55%