Security present value is Rs 100 and future value is Rs 150 after 10 years and value of ‘I = interest rate’ will be

4.14%
0.59%
0.69%
0.79%

The correct answer is A. 4.14%.

The formula for calculating compound interest is:

$FV = PV(1 + r/n)^nt$

where:

  • $FV$ is the future value
  • $PV$ is the present value
  • $r$ is the interest rate
  • $n$ is the number of times interest is compounded per year
  • $t$ is the number of years

In this case, we know that $FV = 150$, $PV = 100$, $n = 1$, and $t = 10$. Substituting these values into the formula, we get:

$150 = 100(1 + r/1)^{10}$

$1.5 = (1 + r/1)^{10}$

$(1.5)^{1/10} = (1 + r/1)$

$1.059463094 = 1 + r/1$

$r = 0.0414213562$

$r = 4.14\%$

Therefore, the interest rate is 4.14%.

Option B is incorrect because the interest rate is not 0.59%.

Option C is incorrect because the interest rate is not 0.69%.

Option D is incorrect because the interest rate is not 0.79%.

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