4MA0 Higher January 2016 Paper 3 Q14

14 Liam invests £8000 in a savings account for 4 years.

The savings account pays compound interest at a rate of

4.5 % for the first year
2.75 % for all subsequent years.

Max invests some money in a savings bond.
The savings bond pays interest at a rate of 2% per year.

At the end of the first year, his savings bond is worth £5763