Foundation January 2022 Paper 2R Q22
22 Shane invests 7200 dollars for 3 years in a savings account.
He gets 2.5% per year compound interest.
How much money will Shane have in his savings account at the end of 3 years?
Give your answer to the nearest dollar.
(3)
| Scheme | Marks |
|---|---|
| 7200 × 0.025 (= 180) or 7200 × 1.025 (= 7380) oe or 7200 × 1.075 (= 7740) oe or 7200 × 0.075 (= 540) oe | M1 |
| (7200 + ‘180’) × 0.025 (= 184.5) and (7200 + ‘180’ + ‘184.5’) × 0.025 (= 189.1125) and 7200 + ‘180’ + ‘184.5’ + ‘189.1…’ (= 7753.6125) | M1 |
| 7754 | A1 |
| (3) | |
| (3 marks) |
Notes
M1: NB year end values are 7380 and 7564.5(0) 7753.6125
A1: answer in range 7753 – 7754
M2 for \(7200 \times (1.025)^3\)