Higher June 2017 Paper 2 Q6
6 Anil wants to invest £25 000 for 3 years in a bank.
| Personal Bank Compound Interest 2% for each year | Secure Bank Compound Interest 4.3% for the first year 0.9% for each extra year |
Which bank will give Anil the most interest at the end of 3 years?
You must show all your working. (3)
| Answer | Mark | Notes |
|---|---|---|
| Secure Bank (supported) | P1 | for a process to work out the interest after one year e.g. \(0.02 \times 25000\ (= 500)\) or \(0.043 \times 25000\ (= 1075)\) or for 1.02 or 25500 or 1.043 or 26075 |
| P1 | for process to find value of the investment after 3 years or the multiplicative factor for 3 years at one of the banks, e.g. \(25000 \times 1.02 \times 1.02 \times 1.02\) oe \((= 26530\ldots)\) or \(1.02^3\ (= 1.0612\ldots)\) or \(25000 \times 1.043 \times 1.009 \times 1.009\) oe \((= 26546\ldots)\) or \(1.043 \times 1.009 \times 1.009\ (= 1.0618\ldots)\) [accept total interest of 1530... or 1546... if final values of investment are not found] | |
| C1 | for Secure Bank from correct figures eg 26530.. and 26546.. or 1530.. and 1546.. or 1.0612.. and 1.0618 |