We use the formula:
A=P(1+r/100)^n
where
A=future value
P=present value
r=rate of interest
n=time period.
11255=8500*(1+r/100)^8
(11255/8500^(1/8)=(1+r/100)
(1+r/100)=1.0357
r=1.0357-1
=3.57%(Approx).
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