mary 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
Answers
Answered by
53
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
Answered by
38
Answer:
12362.70
Step-by-step explanation:
100% + 1.5% = 101.5%
101.5/100=1.015 (which is the multiplier)
12000 x 1.015² = 12362.70
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