Manuel Begins Investing $700 Per Month for 4 Years in an Account

Multiple Choice

Manuel begins investing $700 per month for 4 years in an account earning 3.8% compounded annually. At the end of this time, he makes a $20,000 lump sum deposit on top of the accumulated investment into another account. At the end of 5 years, this amount has accumulated to $84,000. Based on monthly compounding, determine what the rate of interest that will achieve this goal.

A) 8.01%
B) 8.28%
C) 8.13%
D) 8.33%
E) 8.97%