Higher January 2019 Paper 2 Q7
7 Jenny invests $8500 for 3 years in a savings account.
She gets 2.3% per year compound interest.
(a) How much money will Jenny have in her savings account at the end of 3 years?
Give your answer correct to the nearest dollar. (3)
Give your answer correct to the nearest dollar. (3)
Rami bought a house on 1st January 2015
In 2015, the house increased in value by 15%
In 2016, the house decreased in value by 8%
On 1st January 2017, the value of the house was $687 700
(b) What was the value of the house on 1st January 2015? (3)
| Scheme | Marks |
|---|---|
| \(8500 \times 0.023\) (=195.5) or \(8500 \times 1.023\) (=8695.5) | M1 |
| \(((8500 + \text{``}{195.5}\text{''}) \times 1.023) \times 1.023\) | M1 |
| 9100 | A1 |
| (3) |
Notes
M1: complete method
A1: for 9100 – 9100.1 (answer for 600(.1) gains M2A0)
M2 for \(8500 \times 1.023^3\)
(M1 for \(8500 \times 1.023^n\))
| Scheme | Marks |
|---|---|
| \(687\,700 \div 0.92\) (=747 500) or \(687\,700 \div 1.15\) (=598 000) or \(1.15 \times 0.92\) (=1.058) | M1 |
| \(687\,700 \div (0.92 \times 1.15)\) (corrected from the printed mark scheme: 687 7000) | M1 |
| 650 000 | A1 |
| (3) | |
| (6 marks) |
Notes
M1: a correct first step
M1: Dep on M1 for completely correct method