arthur has $19,500 to invest, and wishes to gain $8,000 in interest over eleven years. approximately what is…

arthur has $19,500 to invest, and wishes to gain $8,000 in interest over eleven years. approximately what is the minimum simple interest rate that arthur needs to achieve his goal?\na. 2.64%\nb. 3.04%\nc. 3.72%\nd. 4.51%

arthur has $19,500 to invest, and wishes to gain $8,000 in interest over eleven years. approximately what is the minimum simple interest rate that arthur needs to achieve his goal?\na. 2.64%\nb. 3.04%\nc. 3.72%\nd. 4.51%

Answer

Explanation:

Step1: Recall simple - interest formula

The simple - interest formula is $I = Prt$, where $I$ is the interest, $P$ is the principal amount, $r$ is the interest rate, and $t$ is the time in years. We need to solve for $r$. Rearranging the formula gives $r=\frac{I}{Pt}$.

Step2: Identify values of $I$, $P$, and $t$

We are given that $I = 8000$, $P=19500$, and $t = 11$.

Step3: Substitute values into the formula

$r=\frac{8000}{19500\times11}=\frac{8000}{214500}\approx0.0373$.

Step4: Convert to percentage

To convert the decimal to a percentage, we multiply by 100. So $r\approx 3.73%$, which is closest to $3.72%$.

Answer:

c. 3.72%