Nancy's Parents Loaned Her $80, 000 to Fund Her College

Multiple Choice

Nancy's parents loaned her $80, 000 to fund her college education.Her parents are not charging interest.They desire to be paid in one lump sum of $80, 000 when Nancy can accumulate that amount.Nancy established a savings plan that earns 8% compounded annually.Her new job promises to pay an annual holiday bonus that will enable her to make equal annual, year-end deposits of $6, 400.Approximately how many years will it take Mary to accumulate the desired $80, 000?

A) 8 years
B) 8.5 years
C) 9 years
D) 12.5 years