Refer to the situation described in BE 5–4. Assume that the trip will cost $26,600. What interest rate, compounded annually, must be earned to accumulate enough to pay for the trip?

Data from in BE 5-4

Suppose a husband wants to take his wife on a trip three years from now to Europe to celebrate their 40th anniversary. He has just received a $20,000 inheritance from an uncle and intends to invest it for the trip. The husband estimates the trip will cost $23,500 and he believes he can earn 5% interest, compounded annually, on his investment. Will he be able to pay for the trip with the accumulated investment amount?