Higher November 2021 Paper 2 Q2
2. Tori’s grandfather buys a gold coin for her on the day she is born.
The coin costs £130.
The value of the coin is expected to increase by 6% each year.
What value is the coin expected to have on Tori’s 10th birthday?
Give your answer correct to the nearest penny. [3]
| Scheme | Marks | Comments |
|---|---|---|
| \(130 \times 1.06^{10}\) | M2 | May be seen in stages. M1 for sight of \(130 \times 1.06\) (= 137.8) |
| (£)232.81 | A1 | CAO An answer of (£)208 (simple interest) from use of \(130 \times 0.06 \times 10 + 130\) is awarded M1 A0 |
| (3) |