We use the formula:
A=P(1+r/100)^n
where
A=future value
P=present value
r=rate of interest
n=time period.
125000=100,000*(1+r/100)^5
(125000/100,000)^(1/5)=(1+r/100)
(1+r/100)=1.0456
r=1.0456-1
=4.56%(Approx).
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