Final answer:
To find the interest rate, we need to rearrange the formula for compound interest. Substituting the given values into the formula, we can calculate the interest rate to be approximately 5.83%.
Step-by-step explanation:
To find the interest rate, we can use the formula for compound interest:
Future Value = Principal x (1 + Interest Rate)^Time
In this case, the future value is £14588, the principal is £12600, and the time is 2 years. We can rearrange the formula to solve for the interest rate:
Interest Rate = (Future Value / Principal)^(1/Time) - 1
Substituting the values:
Interest Rate = (£14588 / £12600)^(1/2) - 1
Calculating this, we find that the interest rate is approximately 5.83%. Therefore, the interest rate is 5.83%.