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krok68 [10]
3 years ago
11

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

after two years?
Mathematics
1 answer:
mars1129 [50]3 years ago
7 0

Answer:

FV= £12,362.7

Step-by-step explanation:

Giving the following information:

Initial investment (PV)= £12,000

Number of periods (n)= 2 years

Interest rate (i)= 1.5% = 0.015

<u>To calculate the Future Value, we need to use the following formula:</u>

FV= PV*(1 + i)^n

FV= 12,000*(1.015^2)

FV= £12,362.7

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