Yearly compound interest is given by the following formula:
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:
We now have all of our values to plug into the equation:
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:
The value of the investment is £362.70.
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:
We now have all of our values to plug into the equation:
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:
The value of the investment is £362.70.