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iogann1982 [59]
2 years ago
8

Mary invests £12000 in a savings account. The account pays 1. 5% compound interest per year. Work out the value of her investmen

t after 2 years
Mathematics
1 answer:
mestny [16]2 years ago
4 0

Answer:

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

Step-by-step explanation:P = Principal / initial amountR = rate of interest per cent per yearT = number of yearsA = final amount at the end of T yearsThen:A = P*(1 + R/100)^2In our example:P = £12000R = 1.5 per cent per yearT = 2 yearsThus:A = 12000*(1 + 1.5/100)^2   = 12000*(1 + 0.015)^2   = 12000*(1.015)^2    = 12000*(1.030225)    = 12362.7Value of investment after two years = £12362.7

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