Foundation November 2022 Paper 2 Q23
23 Ella invests £7000 for 2 years in an account paying compound interest.
In the first year, the rate of interest is 3%
In the second year, the rate of interest is 1.5%
Work out the value of Ella’s investment at the end of 2 years. (3)
| Answer | Mark | Mark scheme |
|---|---|---|
| 7318.15 | M1 | for a correct first step eg working out increase for one year \(7000 \times (100 + 3) \div 100\ (= 7210)\) oe or \(7000 \times 3 \div 100\ (= 210)\) oe or find the multiplier for both years eg \((100 + 3) \div 100 \times (100 + 1.5) \div 100\ (=1.04545)\) |
| M1 | for a compound method, eg \(7000 \times (100 + 3) \div 100 \times (100 + 1.5) \div 100\) oe or \(\text{``}7210\text{''} \times 1.5 \div 100\) or (= 108.15) oe | |
| A1 | cao |
Additional guidance
7315 or 315 implies M1
318.15 implies M1M1A0