1. Find Interest Rate i = ?
Present value C = 5000, Time n = 2 Year, Future value FV = 6050,
Interest compounded = Year (1/year)
for Present value using Compound Interest method

Solution:
`C=5000`

`n=2` years (Number of periods)

`FV=6050` (Future value)

Now, Future value (Compound Interest) formula is
`FV=C*(1+i)^n`

`:.6050=5000*(1+i)^2`

`:.(6050)/(5000)=(1+i)^2`

`:.(1+i)^2=1.21`

`:.(1+i)=1.21^(1/2)`

`:.(1+i)=1.1`

`:.i=1.1-1`

`:.i=0.1`

`:.i=10 %` per year

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2. Find Interest Rate i = ?
Present value C = 5000, Time n = 2 Year, Future value FV = 6050,
Interest compounded = Year (1/year)
for Present value using Compound Interest method

Solution:
`C=5000`

`n=2` years (Number of periods)

`FV=6050` (Future value)

Now, Future value (Compound Interest) formula is
`FV=C*(1+i)^n`

`:.6050=5000*(1+i)^2`

`:.(6050)/(5000)=(1+i)^2`

`:.(1+i)^2=1.21`

`:.(1+i)=1.21^(1/2)`

`:.(1+i)=1.1`

`:.i=1.1-1`

`:.i=0.1`

`:.i=10 %` per year

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