Higher June 2018 Paper 3 Q7
7
| Investment A | Save £150 per month for 2 years. 2.5% interest is added to the total amount saved. |
|---|---|
| Investment B | Invest £3500 Compound interest is added at 3% per year. |
After 2 years, how much more is investment B worth than investment A? [4 marks]
| Answer | Mark | Comments |
|---|---|---|
| \(2 \times 12 \times 150 \times 1.025\) or \(24 \times 150 \times 1.025\) or 3690 or \(2 \times 12 \times 150 \times 0.025\) or \(24 \times 150 \times 0.025\) or 90 | M1 | Investment A oe |
| \(1.03 \times 3500\) or 3605 | M1 | Investment B oe eg \(0.03 \times 3500 + 3500\) or \(105 + 3500\) May be implied from \(1.03^2 \times 3500\) |
| \(1.03^2 \times 3500\) or \(1.03 \times\) their 3605 or \(1.0609 \times 3500\) or 3713(.15) or \(0.03 \times\) their 3605 or 108(.15) | M1dep | oe Dependent on 2nd M1 |
| 23.15 | A1 | Condone £23.15p |
Additional guidance
| If build up methods are used they must be complete | |
| 1% = 35 3% = 95 (error without showing method) \(95 + 3500\) or 3595 | M0 |
| 1% = 35 3% \(= 35 \times 3 = 95\) (error but correct method shown) \(95 + 3500\) or 3595 | M1 |
| \(1.03^3 \times 3500\) (full method incorrect but implies \(1.03 \times 3500\)) | M0M1M0 |