Question

Mary invests £12000 into a savings account. The account pays 1.5% compound interest per year.

Work out the value of her investment after two years.

Answer 1

£12,362.70

Explanation:

I used the compound interest formula to work this out.

£12,000 (original amount) x 1.015²

1.015 = 1.5% --- squared because the investment was 2 years.

Hope this helps :D