1MA0 Higher March 2013 Paper 2 Q16
16 Derek buys a house for £150 000
He sells the house for £154 500
(a) Work out Derek’s percentage profit. (3)
Derek invests £154 500 for 2 years at 4% per year compound interest.
(b) Work out the value of the investment at the end of 2 years. (3)
| Working | Answer | Mark | Notes |
|---|---|---|---|
| 154500 – 150000 \(\frac{4500}{150000} \times 100\) | 3 | 3 | M1 for 154500 – 150000 or 4500 M1 for \(\frac{154500 - 150000}{150000} \times 100\) oe A1 cao OR M1 for \(\frac{154500}{150000}\) (× 100) M1 for “\(\frac{154500}{150000} \times 100\)” − 100 oe A1 cao |
| Working | Answer | Mark | Notes |
|---|---|---|---|
| \(154500 \times \frac{4}{100} + 154500\) \(160680 \times \frac{4}{100} + 160680\) or \(154500 \times 1.04^2\) | 167107.20 | 3 | M1 for \(154500 \times \frac{4}{100}\) or 6180 or 12360 or 160680 or 166860 or 1.04 × 154500 M1 (dep) for (154500 + ‘6180’) × \(\frac{4}{100}\) or 6427.2(0) or ‘160680’ × 1.04 A1 for 167107.2(0) as final answer OR M2 for \(154500 \times 1.04^2\) (M1 for 154500 × 1.04) A1 167107.2(0) as final answer |