Higher November 2018 Paper 4 Q4
4 Here are the interest rates for two bank accounts.
| Northern Savings Bank (NSB) | Central Alliance Bank (CAB) |
|---|---|
| 2.5% per year compound interest | 2.7% per year simple interest |
Mia puts £6400 in each account.
Calculate the difference in value between the two accounts after 8 years.
Give your answer correct to the nearest penny. [6]
| Answer | Marks | Part marks and guidance | |
|---|---|---|---|
| 15.38 cao | 6 | M2 for \(6400 \times 1.025^8\) oe soi 7797.78 or M1 for \(1.025^k\) (\(k \gt 1\)) oe soi 6724 AND M2 for 6400 + 6400 × [0].027 × 8 oe soi 7782.4 or M1 for 6400 × [0].027 oe soi 172.8 or 1382.4 AND M1 for subtracting their two totals or their two interests e.g. their 7797.7785… – their 7782.4 or their 1397.78 – their 1382.4 | |