Foundation November 2021 Paper 1 Q24
24 Charlie invests £9000 at a rate of 0.7% per year compound interest.
Calculate the total amount of interest Charlie will have earned after 5 years.
Give your answer correct to the nearest penny. [4]
| Answer | Marks | Part marks and guidance | |
|---|---|---|---|
| 319.44 cao | 4 | B3 for 9319.44 soi or for 319[.4…] as final answer OR M3 for \((9000 \times 1.007^5) - 9000\) OR M2 for \(9000 \times 1.007^5\) oe implied by 9319[.44…] or \(9000 \times r^5 - 9000\) oe OR M1 for \(9000 \times 1.007^n\) oe implied by 9126[.44…] (\(n \ne 5\) and \(n \geqslant 2\)) or \(9000 \times r^n\) oe (\(n \geqslant 2\)) | Answers of 315 and 9315 are from simple interest and score 0 For M2 and M1 where \(r = 1.7\), 1.07 or 1.0007 |