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jeyben [28]
3 years ago
9

Mary invests £12,000 in a savings account the account pays 1.5% compound interest per year work out the value of her investment

after 2 years.​
Mathematics
1 answer:
Lesechka [4]3 years ago
5 0

Answer:

The value of Mary's investment after two years = £12362.7

Step-by-step explanation:

P = Principal / initial amount

R = rate of interest per cent per year

T = number of years

A = final amount at the end of T years

Then:

A = P*(1 + R/100)^2

In our example:

P = £12000

R = 1.5 per cent per year

T = 2 years

Thus:

A = 12000*(1 + 1.5/100)^2

  = 12000*(1 + 0.015)^2

  = 12000*(1.015)^2

   = 12000*(1.030225)

   = 12362.7

Value of investment after two years = £12362.7

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