Foundation June 2018 Paper 2R Q22
22 Hiran invests 20 000 rupees in an account for 3 years at 1.5% per year compound interest.
Work out the total amount of money in the account at the end of 3 years.
Give your answer to the nearest rupee.
(3)
| Scheme | Marks |
|---|---|
Eg \(\dfrac{1.5}{100} \times 20\,000\) oe or 300 \(\dfrac{1.5}{100} \times (20\,000 + \text{'}300\text{'}) = 304.5\) \(\dfrac{1.5}{100} \times (20\,000 + \text{'}300\text{'} + \text{'}304.5\text{'})\) = 20913.5675 or \(20\,000 \times 1.015^3\) | M1 |
| M1 | |
| 20 914 | A1 |
| (3) | |
| (3 marks) |
Notes
M1: for eg \(\dfrac{1.5}{100} \times 20\,000\) oe or 300
M1: for completing method
A1: Answers in range 20 913 – 20 914
OR M2 for \(20\,000 \times 1.015^3\) or \(20\,000 \times 1.015^4\) or 21 227.27.. (M1 for \(20\,000 \times 1.015^2\) or 20 604.5)
Accept 1 + 0.015 as equivalent to 1.015 throughout
SC: If no other marks gained, award M1 for 20 000 × 1.045 oe or 20900 or 900