Question

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

Answer 1

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