Foundation June 2024 Paper 2 Q24
24 Charlie invests £1200 at a rate of 5% per year compound interest.
Show that the total amount of interest Charlie will have received after 2 years is £123. [4]
| Answer | Marks | Part marks and guidance | |
|---|---|---|---|
| \(1200 \times 1.05\) oe or \(1200 \times 0.05\) oe | M1 | e.g. 10% = 120, 5% = 60 We do not allow mis-reads in this question | |
| 1260 or 60 or 1.1025 | B1 | ||
| \(1260 \times 1.05\) oe or \(1260 \times 0.05\) oe or \(60 \times 1.05\) oe or \(60 \times 0.05\) oe | M1FT | M1FT for their \(1260 \times 1.05\) oe or their \(1260 \times 0.05\) oe or their \(60 \times 1.05\) oe or their \(60 \times 0.05\) oe | M1M1 implied by \(1200 \times 1.05^2\) oe M1FT implied by 1323 or 63 or 3 For method we do not accept e.g. 105% \(\times\) 1200 or 5% of 1200 |
| 60 and 63 or 1323 | A1 | A1 dep M1B1M1 | |