Ruth HWants to Build a House in 12 Years

Multiple Choice

Ruth H.wants to build a house in 12 years.She estimates that the total cost will be $350,000.If she can put aside $20,000 at the end of each year,what rate of return must she earn in order to have the amount needed,assuming annual compounding?

A) Between 11% and 12%
B) Between 8% and 9%
C) 17%
D) 6.63%