Question

Pls can I have help with this question if you know it pls tell me ☝

Answer 1

Yearly compound interest is given by the following formula:

$A = P(1+r)^t$

A is the total amount after the time period elapses. P is the initial amount invested. r is the interest rate in decimal form, and t is the amount of years that elapse.

The interest rate is 1.5%. Divide by 100 to convert into a decimal:

$1.5 \div 100 = 0.015$

We now have all of our values to plug into the equation:

$P = 12,000, r = 0.015, t = 2$
$12,000(1+0.015)^{2}$
$12,000(1.015)^{2} = 12,362.7$

After 2 years, Mary will have 12,362.70 euros in her account.

To find the value of the investment, subtract the original amount from the new amount:

$12,362.70 - 12,000 = 362.70$

The value of the investment is £362.70.