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Mary invest £12000 in a savings account.
the account pays 1.5% compound interest per year.

work out the value of her investment after 2 Years

Respuesta :

carlosego
 For this case we have an equation of the form:
 [tex]y = A * (b) ^ t [/tex]
 Where,
 A: initial investment
 b: growth rate
 t: time in years.
 Substituting values we have:
 [tex]y = 12000 * (1,015) ^ t [/tex]
 Then, for 2 years we have:
 [tex]y = 12000 * (1,015) ^ 2 y = 12362.7[/tex]
 Answer:
 The value of the investment of it after two years is given by:
 y = 12362.7

Answer:

The value of her investment after 2 Years is   £ 12362.70

Step-by-step explanation:

Given :  Mary invest £ 12000 in a savings account. The account pays 1.5% compound interest per year.

We have to find the value of her investment after 2 Years

Using formula for compound interest

[tex]A=P(1+r)^n[/tex]

where, A is amount

P is principal

r is rate of interest

n is time period

We have, P = £ 12000

t = 2 years

r = 1.5% = 0.015

Substitute, we have,

[tex]A=12000\left(1+0.015\right)^2[/tex]

Simplify, we have,

A =  £ 12362.70

The value of her investment after 2 Years is   £ 12362.70