Foundation November 2019 Paper 2 Q16
16. 25 years ago, Raveena’s grandparents invested £500 for her in an account paying 3·4% compound interest per annum.
No extra money was paid in and no money was withdrawn during these 25 years.
Raveena has decided to withdraw all the money in the account after 25 years.
How much should Raveena receive?
Give your answer correct to the nearest penny.
You must show all your working. [3]
| Scheme | Marks | Comments |
|---|---|---|
| \(500 \times 1.034^{25}\) | M1 | Or equivalent full method |
| = (£) 1153.41 | A2 | Must be to the nearest penny A1 for (£) 1153.40(9...) |
| (3) |