SOLUTION: can some one please help? I'm trying to find the compounded annually interest rate. I'm not sure what the formula is to work it out. with this question can someone please tell me h

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Question 1061722: can some one please help? I'm trying to find the compounded annually interest rate. I'm not sure what the formula is to work it out. with this question can someone please tell me how to find it. when I think I'm right it doesn't look right. I think its 3.5% but not sure
here goes.... Charles invests £18,750 and after 6 years his balance is 23,048.54 His investment pays interest compounded annually. at what rate did he receive? answer needs to be in percent , rounded to nearest decimal point
thank you guys all help is appreitiated
Answer by addingup(3677) About Me  (Show Source):
You can put this solution on YOUR website!
r = (A/P)^(1/t)-1
r= (23,048.54/18,750)^(1/6)-1 solve, use your calculator, and you'll get 0.035 or 3.5%, so you had it right.