Foundation January 2023 Paper 2 Q23
23 Matteo is going to invest 5000 Swiss francs for two years.
He can invest his money in Bank G or in Bank H.
| Bank G 1.6% per year compound interest | Bank H 2.9% interest added after two years |
The total amount of interest Matteo would receive at the end of two years from Bank G is more than the amount of interest Matteo would receive at the end of two years from Bank H.
How much more?
(4)
| Scheme | Marks |
|---|---|
\(\dfrac{2.9}{100} \times 5000\;(= 145)\) oe or 1.029 × 5000 (=5145) oe or 1.0292 × 5000 (= 5294….) oe or 0.058 × 5000 ( = 290) oe or 1.058 × 5000 ( = 5290) | M1 |
| 5000 × 0.016 oe (= 80) oe or 5000 × 1.016 oe (= 5080) oe or 5000 × 0.032 ( = 160) oe or 5000 × 1.032 (= 5160) oe | M1 |
| (80 + 5000) × 0.016 (= 81.28) oe or 5080 × 1.016 (= 5161.28) oe | M1 |
| Correct answer scores full marks (unless from obvious incorrect working) Answer: 16.28 | A1 |
| (4) | |
| (4 marks) |
Notes
M1: Bank H
M1: Bank G
M1: Bank G
M2 for 5000 × 1.0162 (= 5161.28)