Foundation June 2024 Paper 1R Q20
20 Slavomir invests 5200 euros in a savings account for 4 years.
He gets 2.5% per year compound interest.
Work out how much money Slavomir will have in the savings account at the end of 4 years.
Give your answer correct to the nearest euro.
(3)
| Scheme | Marks |
|---|---|
| 5200 × 1.025 (= 5330) oe or 5200 × 0.025 (= 130) oe | M1 |
| for “5330” × 1.025 (= 5463...) oe and “5463.25” × 1.025 (= 5599...) oe and “5599.83...” × 1.025 (= 5739...) oe | M1 |
| Correct answer scores full marks (unless from obvious incorrect working) Answer: 5740 | A1 |
| (3) | |
| (3 marks) |
Notes
M1: for a method to find 2.5% or 102.5% of 5200
M1: for a complete method
A1: 5739 – 5740
SC: If no other marks awarded, award B1 for
5200 × 0.1 (= 520) oe
5200 × 1.1 (= 5720) oe
5200 × 0.9 (= 4680) oe
5200 × 0.975 (= 5070) oe
\(5200 \times 0.975^4\) (= 4699...) oe
(accept (1 + 0.025) as equivalent to 1.025 throughout but not (1 + 2.5%))
M2 for \(5200 \times 1.025^4\) oe
or
for \(5200 \times 1.025^5\) (= 5883…) oe