Sonya saved $15,000 last summer from working on a road construction crew in Montana. What a great job. She came back really tan. She wants to invest the full amount now so that in 10 years she can buy her dream car, which costs $30,000. What rate of return will she need to receive in order to accomplish this goal

7.18%

Explanation:

Data provided in the question:

Principle amount i. e the amount invested = $15,000

Time, n = 10 years

Future value = $30,000

Now,

Using the compounding formula

we have

Future value = Present value * (1 + rate) ⁿ

Therefore,

$30,000 = $15,000 * (1 + rate) ¹⁰

or

2 = (1 + rate) ¹⁰

or

1 + rate = 1.0718

or

Rate = 1.0718 - 1

or

Rate = 0.0718

or

Rate = 0.0718 * 100% = 7.18%