Upstate Bank is offering​ long-term certificates of deposit with a face value of $100,000 ​(future value). Bank customers can buy these CDs today for $55,000 and will receive the ​$100,000 in 25 years. What interest rate is the bank paying on these​ CDs?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Upstate Bank is offering​ long-term certificates of deposit with a face value of $100,000 ​(future value). Bank customers can buy these CDs today for $55,000 and will receive the ​$100,000 in 25 years. What interest rate is the bank paying on these​ CDs?

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