at what interest rate are 45000 a year ago and 55000 one yea

at what interest rate are 450.00 a year ago and 550.00 one year from now equivalent?

Answer

FV=PV*(1+i)^n

FV=550

PV=450

n=2

550=450*(1+i)^2

(1+i)^2=550/450

1+i=(550/450)^0.5

i=(550/450)^0.5 -1

=0.105541597

=10.55%

The interest rate is 10.55%