Foundation November 2021 Paper 2 Q18
18. Tori’s grandfather buys a gold coin for her on the day she is born.
The coin costs £130.
The value of the coin is expected to increase by 6% each year.
What value is the coin expected to have on Tori’s 10th birthday?
Give your answer correct to the nearest penny. [3]
Expected value of the coin £ ………………
| Scheme | Marks | Comments |
|---|---|---|
| \(130 \times 1.06^{10}\) | M2 | May be seen in stages; M1 for sight of 130 × 1.06 (= 137.8) |
| (£)232.81 | A1 | CAO An answer of (£)208 (simple interest) from use of 130 × 0.06 ×10 +130 is awarded M1 A0 |
| (3) |