maggie has $14,100 to invest, and wishes to gain $4,000 in interest over the next eight years. approximately…

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%

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

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 $r$.

Step2: Rearrange the formula for $r$

From $I = Prt$, we can solve for $r$ by dividing both sides of the equation by $Pt$. So, $r=\frac{I}{Pt}$.

Step3: Substitute the given values

We know that $I = 4000$, $P = 14100$, and $t = 8$. Substituting these values into the formula for $r$, we get $r=\frac{4000}{14100\times8}$.

Step4: Calculate the value of $r$

First, calculate $14100\times8=112800$. Then, $r=\frac{4000}{112800}\approx0.0355$.

Step5: Convert $r$ to a percentage

To convert the decimal to a percentage, multiply by 100. So, $r = 0.0355\times100 = 3.55%$.

Answer:

B. 3.55%