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?
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%.
