20
QuizMultiple Choice

Topic Test

Question 20 • Financial Math - MA2007

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?

Answer
A
2.89%
B
3.55%
C
4.95%
D
5.18%

Explanation

For simple interest, use I = P × r × t. Solving for the rate gives r = $4,000 ÷ ($14,100 × 8) ≈ 0.0355, or 3.55%. The minimum rate is approximately 3.55%, choice B.

AI-written and checked against the verified answer.

Previous
Next