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if the face value of a deposit is $100,000( future value) and a customer today deposit $67000 and will receive $100,000 in 15 year what is the interest rate?

Guest Mar 10, 2017
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FV = PV [1 + R]^N

100,000 = 67,000 x [1 + R]^15  divide both sides by 67,000

1.4925373.. = [1 + R]^15           take the 15th root of both sides

[1 + R] =1.027058...                   subtract 1 from both sides

R =0.027058 x 100

R =2.71%.

Guest Mar 10, 2017

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