Higher January 2021 Paper 1 Q7
7 Chen invests 40 000 yuan in a fixed-term bond for 3 years.
The fixed-term bond pays compound interest at a rate of 3.5% each year.
Give your answer to the nearest yuan. (3)
Wang invested \(P\) yuan.
The value of his investment decreased by 6.5% each year.
At the end of the first year, the value of Wang’s investment was 30 481 yuan.
| Scheme | Marks |
|---|---|
| for 0.035 × 40 000 oe (= 1400) or 1.035 × 40 000 oe (= 41 400) | M1 |
| 1.035 × “41 400” oe (= 42 849) 1.035 × “42 849” oe (= 44 348.72) OR \(40\,000 \times 1.035^3\) | M1 |
| Correct answer scores full marks (unless from obvious incorrect working) Answer: 44 349 | A1 |
| (3) |
Notes
M1: for finding 3.5% or 103.5% of 40 000
M1: for completing method to find total amount in the account
OR M2 for \(40\,000 \times 1.035^3\)
or \(40\,000 \times 1.035^4\) (= 45 900.92)
(M1 for \(40\,000 \times 1.035^2\) (= 42 849))
A1: accept 44 348 – 44 349
SC: if no other marks gained award M1 for 0.105 × 40 000 oe or 4200 or 44 200
accept (1 + 0.035) as equivalent to 1.035 throughout
| Scheme | Marks |
|---|---|
| e.g. 30 481 ÷ (1 – 0.065) or 30 481 ÷ 0.935 | M2 |
| Correct answer scores full marks (unless from obvious incorrect working) Answer: 32 600 | A1 |
| (3) | |
| (6 marks) |
Notes
M2: for a complete method
(M1 for 30 481 ÷ (100 – 6.5) (= 326)
or (100 – 6.5)% = 30 481 or 93.5% = 30 481
or e.g. \((1 - 0.065)x = 30\,481\))