Higher November 2021 Paper 2 Q10
10 Louise invests £\(x\) in Better Investments for 3 years.
Sadiq invests £\(x\) in County Bank for 3 years.
| Better Investments | County Bank |
|---|---|
| Compound Interest 2.5% per annum | Compound Interest 2% per annum for the first two years 3.5% per annum for each extra year |
At the end of the 3 years, the value of Louise’s investment is £344 605
Work out the value of Sadiq’s investment at the end of the 3 years. (4)
| Answer | Mark | Mark scheme |
|---|---|---|
| 344 580.48 | P1 | for a start to the process to find the initial investment eg \(344\,605 \div 1.025\) oe \((= 336\,200)\) or for \(1.025^3\ (= 1.07689\ldots.)\) |
| P1 | for complete process to find original investment, eg \(344\,605 \div 1.025^3\) oe \((= 319\,078\) to \(320\,265)\) | |
| P1 | for [initial investment] \(\times\ 1.02^2 \times 1.035\) oe | |
| A1 | for answer in the range 343 587 to 344 581 |
Additional guidance
[initial investment] must be clearly what they believe to be that and cannot be 344605