Foundation June 2019 Paper 3 Q25
25 Katy invests £200 000 in a savings account for 4 years.
The account pays compound interest at a rate of 1.5% per annum.
Calculate the total amount of interest Katy will get at the end of 4 years. (3)
| Answer | Mark | Mark scheme |
|---|---|---|
| 12272.70 12272.71 or 12272.72 | M1 | for evidence of using a correct first step eg \(200000 \times 0.015\ (= 3000)\) or \(200000 \times 1.015\ (= 203000)\) |
| M1 | for evidence of a compound interest method eg \(203000 \times 0.015\ (= 3045)\) or \(203000 \times 1.015\ (= 206045)\) or \(206045 \times 0.015\ (= 3090.675)\) or \(206045 \times 1.015\ (= 209135.675)\) or \(209135.675 \times 0.015\ (= 3137.035...)\) or \(209135.675 \times 1.015\ (212272.710...)\) or \(200000 \times 1.015^t\), \(t \geqslant 2\) | |
| A1 | for 12272.7(0) or 12272.71 or 12272.72 SC B2 for 212272.7(0) or 212272.71 or 212272.72 |
Additional guidance
For the second M1: values may be rounded or truncated to 2 dp