We need to know about the concept of compound interest to solve the given problem. The minimum interest rate that Harry needs to meet his need is 11.4%
Compound interest can be described as the interest that you earn on both the principal amount and the interest earned. In this question it is said that the bank offers annual interest compounded monthly, we will be using a formula to solve this problem. Since Harry has 21350 EUR we will take that as the principal amount and the minimum amount that he needs is 30000 EUR we will consider this to be the final amount at the end of 3 years. We need to find out the rate of interest that the bank offers.
A=P[tex](1+\frac{r}{12} )^{12t}[/tex] where A is amount, P is principal, r is the rate of interest and t is time period.
P=21350 EUR
A=30000 EUR
t=3
30000=21350[tex](1+\frac{r}{12}) ^{36}[/tex]
[tex]\frac{600}{427} =(1+\frac{r}{12}) ^{36}[/tex]
1+[tex]\frac{r}{12}[/tex]=1.00949
r/12=0.00949
r=0.1139
r=11.4%
Therefore we found that the minimum rate of interest Harry requires to meet his needs is 11.4%
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