Calculate the original price of the bicycle.

Calculate the difference between the original price of the bicycle and the total amount Juan will pay.

$\frac{{560}}{{70}} \times 100$ (or equivalent)     (M1)

Note:     Award (M1) for dividing 560 by 0.7 or equivalent.

$= 800{\text{ (USD)}}$     (A1)     (C2)

[2 marks]

$560{\left( {1 + \frac{{75}}{{12 \times 100}}} \right)^{12 \times \frac{1}{2}}}$     (M1)(A1)

Note:     Award (M1) for substitution into interest formula, (A1) for their correct substitution.

OR

${\text{N}} = \frac{1}{2}$

${\text{I% }} = 75$

${\text{PV}} = ( \pm )560$

${\text{P/Y}} = 1$

${\text{C/Y}} = 12$     (A1)(M1)

Note:     Award (A1) for ${\text{C/Y}} = 12$ seen, (M1) for all other entries correct.

OR

${\text{N}} = 6$

${\text{I% }} = 75$

${\text{PV}} = ( \pm )560$

${\text{P/Y}} = 12$

${\text{C/Y}} = 12$     (A1)(M1)

Note:     Award (A1) for ${\text{C/Y}} = 12$ seen, (M1) for all other entries correct.

$= 805.678 \ldots {\text{ (USD)}}$     (A1)

Note:     Award (A3) for 805.678… (806) seen without working.

(Juan spends) 5.68 (USD) (5.67828… USD) (more than the original price)     (A1)(ft)     (C4)

[4 marks]