Foundation November 2024 Paper 2 Q25
25 Nisha invests 20 000 euros for 3 years in a savings account.
She gets 3.5% per year compound interest.
Work out how much money Nisha will have in her savings account at the end of the 3 years.
Give your answer correct to the nearest euro.
(3)
| Scheme | Marks |
|---|---|
20 000 × 1.035 (= 20 700) oe or 20 000 × 0.035 (= 700) oe (NB: accept \(\left(1 + \dfrac{3.5}{100}\right)\) for 1.035 but not (1 + 3.5%)) | M1 |
| “20 700” × 1.035 (= 21 424.5) “21 424.5” × 1.035 oe eg \(20700 \times 0.035 = 724.5\) & \(20700 + 724.5 = 21424.5\) \(21424.5 \times 0.035 = 749.85\ldots\) & \(21424.5 + 749.85\ldots\) (some rounding may have occurred but if the intention is clear, please award) | M1 |
| Correct answer scores full marks (unless from obvious incorrect working) Answer: 22 174 | A1 |
| (3) | |
| (3 marks) |
Notes
M1: For finding 103.5% or 3.5% of 20 000
M1: dep for a complete method
A1: Allow 22174 – 22175
(if you see the correct answer and then 20 000 is subtracted to give 2174 then please award full marks – 2174 with no working gains 2 marks)
SCB2 for \(\left(2000 \times 1.035^3\right) = 2217\ldots\) [misread]
SCB2 for 22160 (20 000 × 1.108)
SCB2 for 22180 (20 000 × 1.109)
SCB1 if no marks awarded for any of these are seen (not necessarily the answer)
20 000 × 0.035n
20 000 × 0.965³ (= 17 972.……)
20 000 × 0.105 (= 2100)
20 000 × 1.105 ( (= 22 100)
20 000 × 1.035² ( = 21 424.5)
M2 for 20 000 × 1.035³
[NB: \(1.035^3 = 1.108717\ldots\)]
or
20 000 × 1.035⁴
(= 22 950…)