Foundation June 2019 Paper 1 Q22
22 Claudia invests £25 000 at a rate of 2% per year compound interest.
Calculate the total amount of interest she will have earned after 5 years.
Give your answer correct to the nearest penny. [4]
| Answer | Marks | Part marks and guidance |
|---|---|---|
| 2 602.02 cao | 4 | B3 for 27 602.02 soi by 2 602[.02…] as final answer OR M2 for \(25\,000 \times (1.02)^5\) oe implied by 27 602[.02…] See appendix OR M1 for \(25\,000 \times (1.02)^k\) oe implied by 26 010 (\(k \ne 5\) and \(k \geqslant 2\)) See appendix |
Appendix
Question 22
Year on year method
| working | total | interest | year |
|---|---|---|---|
| 25000 \(\times\) 1.02 | 25500 | 500 | year 1 |
| 25500 \(\times\) 1.02 | 26010 | 510 | year 2 |
| 26010 \(\times\) 1.02 | 26530.2 | 520.2 | year 3 |
| 26530.2 \(\times\) 1.02 | 27060.804 | 530.604 | year 4 |
| 27060.804 \(\times\) 1.02 | 27602.020085 | 541.216 | year 5 |
(corrected from the printed mark scheme: the year 5 working was printed as 27060.806 \(\times\) 1.02)