Determine the interest rate earned on a $1950 deposit when $2250 is paid back in one year
Answer:
PV = FV/(1+r)^n |
PV - Present value |
FV - Future value |
r - Interest rate |
n - no. of periods |
1950 = 2250/(1+r)^1 |
r = (2250/1950)^1 - 1 = 0.15846 = 15.846% |
Rate of interest =15.85% |
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