Foundation November 2017 Paper 3 Q15
15 Luka invests £1500.
At the end of the first year, 2% interest is added.
At the end of the second year, after interest has been added, the investment is worth £1606.50.
Show that 5% interest has been added at the end of the second year. [4]
| Answer | Marks | Part marks and guidance | |
|---|---|---|---|
| 1500 \(\times\) 2 \(\div\) 100 oe | M1 | Follow method if calculations seen Allow 1500 \(\times\) [0].02 | Mark by ONE method only 1500 \(\times\) 1.02 = 1530 scores M1 B2 |
| 1500 + 30 = 1530 | B2 | B1 for 30 or 1530 (no addition shown) | 30 or 1530 (no working) scores M0B1 |
| 1530 \(\times\) 1.05 oe leading to 1606.5[0] | M1 | or (1606.50 – 1530) \(\div\) 1530 \(\times\) 100 [= 5] or 76.50 \(\div\) 1530 \(\times\) 100 [= 5] | May be seen in stages Non-calculator method must be complete to score M1 1% \(\to\) 1530 \(\div\) 100 = 15.3 5% \(\to\) 15.3 \(\times\) 5 = 76.5 1530 + 76.5 [= 1606.5] |
| OR Alternative marking (follow method if explanation seen) | |||
| 2% of 1500 = 30 | B1 | ||
| 1500 + 30 = 1530 | B1 | ||
| 5% of 1530 = 76.5[0] | B1 | ||
| 1530 + 76.5[0] = 1606.5[0] | B1 | ||