Foundation January 2019 Paper 2 Q21
21 Jenny invests $8500 for 3 years in a savings account.
She gets 2.3% per year compound interest.
How much money will Jenny have in her savings account at the end of 3 years?
Give your answer correct to the nearest dollar.
(3)
| Scheme | Marks |
|---|---|
| 8500 × 0.023 (= 195.5) or 8500 × 1.023 (= 8695.5) | M1 |
| ((8500 + “195.5”) × 1.023) × 1.023 | M1 |
| 9100 | A1 |
| (3) | |
| (3 marks) |
Notes
M1: M2 for \(8500 \times 1.023^3\)
(M1 for \(8500 \times 1.023^n\))
M1: complete method
A1: for 9100 – 9100.1 (answer of 600(.1) gains M2)