Higher June 2017 Paper 2 Q2
2. Steve invests £3400 in an account paying 2·6% compound interest per annum.
Steve leaves his investment in the account for 10 years.
How much less than £5000 will this investment be worth at the end of the 10-year period?
Give your answer correct to the nearest penny.
You must show all your working. [3]
| Scheme | Marks | Comments |
|---|---|---|
| \(3400 \times 1.026^{10}\) | M1 | Or equivalent full method |
| = (£) 4394.94 | A1 | Accept (£) 4394.93(569…) |
| (£) 605.06 | B1 | Must be to the nearest penny FT (£)5000 – ‘their 4394.94’ provided M1 awarded and ‘their 4394.94’ < 5000 |
| (3) |