Barbara invests £14000. in the first year she earns 5.9% interest. in the second year, she earned 3.2% interest. what was the fotal increase over the 2 years

The total increase over the 2 years=£1,300.43

Step-by-step explanation:

a). Express the total amount after the first year as shown;

A=P(1+r)^n

A=total amount earned in a year

P=initial amount invested

r=annual interest rate

n=number of years

In our case;

P=£14000

r=5.9%=5.9/100=0.059

n=1

A=14,000(1+0.059)^1

A=14,000(1.059)

A=£14,826

The total amount in the second year

A=14,826(1+0.032)^1

A=£15,300.432

Increase=Amount after 2 years-Initial amount

Increase=(15,300.432-14,000)

Increase=1,300.43

The total increase over the 2 years=£1,300.43

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