Answer:
Explanation:
To calculate the compound interest on Mary's savings account, we can use the formula:
A = P * (1 + r/n)^(nt)
Where:
A is the amount after t years
P is the initial principal (£12000)
r is the interest rate (1.5%)
n is the number of times the interest is compounded in a year (let's assume it's compounded annually)
t is the number of years (2)
So, plugging in the values, we get:
A = £12000 * (1 + 0.015/1)^(1 * 2)
A = £12000 * (1.015)^2
A = £12000 * 1.0302
A = £12363.84
So, after 2 years, Mary's £12000 investment would be worth £12363.84, including the compound interest.