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24 June, 21:01

Mary invests £12000 in a savings account the account pays 1.5% compound interest per year work out the value of her investment after 2 years

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  1. 24 June, 21:16
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    The formula for this is

    A = P (1 + r/100) ^n where P = initial investment, r = compound interest as per cent, and n = number of years.

    so here we have

    A = 12000 (1 + 1.5/100) ^ 2 = 12000 * 1.015^2 = £12,362.70
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