Mary invests £12000 into a savings account. The account 1.5% compound interest per year. Work out the value of her investment after 2 years.

Final answer: To calculate the value of Mary's £12,000 investment after 2 years with compound interest at a rate of 1.5% per year, we use the formula results in an investment value of £12,362.70. Explanation: The student asked how to calculate the value of an investment of £12,000 with compound interest of 1.5% per year after 2 years. To find the value of the investment after 2 years, we use the formula for compound interest, which is: P is the principal amount (£12,000), r is the annual interest rate (1.5% or 0.015), n is the number of years the money is invested (2). Let's calculate: After the calculation, the updated total value of the investment after 2 years would be: 12000 * 1.030225 = £12,362.70 Therefore, the value of Mary's investment after 2 years, with compound interest, will be £12,362.70.

Answer: Step-by-step 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.