Mary invests £12000 in a savings account the account pays 1.5% compound interest per year work out the value of her investment a

Question

Morgarella [4.7K]

3 years ago

10

Mary invests £12000 in a savings account the account pays 1.5% compound interest per year work out the value of her investment a

fter 2 years

Mathematics

1 answer:

Ugo [173] · Answer 1 · 2022-07-13T20:59:03+03:00

Ugo [173]3 years ago

3 0

The formula for this is
A = P(1 + r/100)^n where P = initial investment, r = compound interest as per cent, and n = number of years.

so here we have

A = 12000(1 + 1.5/100) ^ 2 = 12000 * 1.015^2 = £12,362.70