Answer: £122.4
Step-by-step explanation:
Given
The rate of interest is 4%
The principal invested is £1500
the time period is 2 years
Compound interest is given by
[tex]C.I.=P(1+r\%)^t-P[/tex]
put values
[tex]C.I.=1500(1+0.04)^2-1500\\C.I.=1500[1.04^2-1]\\C.I.=1500[1.0816-1]\\C.I.=1500\times 0.0816\\C.I.=122.4[/tex]
Therefore, interest earned is £122.4
