Answer:
43.1%
Explanation:
Working out the interest rate given the Present Value, a Future Value and how many Periods.
The applicable formula is r = ( FV / PV )1/n - 1
Where r= interest rate
FV = future value... 30 m
Pv= present value... 5 m
n= number of periods.. 5
R = ( 30,000,000/ 5,000,000)1/5 -1
R=(6)0.2 -1
R=1.430969-1
R=0.430969
As a percentage , R=0.430969 x 100
=43.096
=43.1%
