| Date | November 2009 | Marks available | 3 | Reference code | 09N.1.sl.TZ0.15 |
| Level | SL only | Paper | 1 | Time zone | TZ0 |
| Command term | Calculate | Question number | 15 | Adapted from | N/A |
Question
Mr Tan invested 5000 Swiss Francs (CHF) in Bank A at an annual simple interest rate of r %, for four years. The total interest he received was 568 CHF.
Mr Black invested 5000 CHF in Bank B at a nominal annual interest rate of 3.6 %, compounded quarterly for four years.
Calculate the total interest he received at the end of the four years. Give your answer correct to two decimal places.
Markscheme
Financial penalty (FP) applies in part (b).
\(I = 5000(1.009)^{16} - 5000\) (M1)(A1)
Note: Award (M1) for substitution into the compound interest formula, (A1) for correct values.
(FP) I = 770.70 CHF (A1) (C3)
[3 marks]
Examiners report
This question was answered well by many candidates, with a majority of them gaining maximum marks. Some candidates used the proper formula but had done incorrect substitution.
