Answer:
1.75 %
Explanation:
The formula for the future value (FV) of an investment is
FV =PV(1 + r/n)^nt
If the interest is calculated once a year, n = 1, and the formula reduces to
FV = PV(1 +r)^t
5550 = 5000(1 + r)⁶ Divide both sides by 5000
1.110 = (1+r)^6 Take the sixth root of each side
1 + r = 1.0175 Subtract 1 from each side
r = 0.0175 Convert to percent
r = 1.75 %
The interest rate is 1.75 %.