Answer:
the rate of interest is 47%
Explanation:
The computation of the rate of return is shown below;
Given that
Future value = $300,000
Present value = 0.01
And, the NPER = 45
Now as we know that
Future value = Present value × (1 + rate of interest)^time period
$300,000 = 0.01 × (1 + rate of interest)^45
$300,000 ÷ 0.01 = (1 + rate of interest)^45
$30,000,000 = (1 + rate of interest)^45
(1 + rate of interest) = $30,000,000 ^(1 ÷ 45)
So the rate of interest is 47%
