Question

Pls can I have help with this question if you know it pls tell me ☝

Answer 1

Yearly compound interest is given by the following formula:


`A = P(1+r)^t`

A is the total amount after the time period elapses. P is the initial amount invested. r is the interest rate in decimal form, and t is the amount of years that elapse.

The interest rate is 1.5%. Divide by 100 to convert into a decimal:


`1.5 / 100 = 0.015`

We now have all of our values to plug into the equation:


`P = 12,000, r = 0.015, t = 2`

`12,000(1+0.015)^(2)`

`12,000(1.015)^(2) = 12,362.7`

After 2 years, Mary will have 12,362.70 euros in her account.

To find the value of the investment, subtract the original amount from the new amount:


`12,362.70 - 12,000 = 362.70`

The value of the investment is £362.70.