Find the amount of money that Minta will have in the bank after 3 years. Give your answer correct to two decimal places.

Minta will withdraw the money from her bank account when the interest earned is 300 euros.

Find the time, in years, until Minta withdraws the money from her bank account.

$1000{\left( {1 + \frac{5}{{4 \times 100}}} \right)^{4 \times 3}}$     (M1)(A1)

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

 

OR

${\text{N}} = 3$

${\text{I}}\%  = 5$

${\text{PV}} =  - 1000$

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

${\text{C/Y}} = 4$     (A1)(M1)

Note: Award (A1) for ${\text{C/Y}} = 4$ seen, (M1) for other correct entries.

 

OR

${\text{N}} = 12$

${\text{I}}\%  = 5$

${\text{PV}} =  - 1000$

${\text{P/Y}} = 4$

${\text{C/Y}} = 4$     (A1)(M1)

Note: Award (A1) for ${\text{C/Y}} = 4$ seen, (M1) for other correct entries.

 

$= 1160.75$ (€)    (A1)     (C3)

$1000{\left( {1 + \frac{5}{{4 \times 100}}} \right)^{4 \times t}} = 1300$     (M1)(A1)

Note: Award (M1) for using the compound interest formula with a variable for time, (A1) for substituting correct values and equating to $1300$.

 

OR

${\text{I}}\%  = 5$

${\text{PV}} =  \pm 1000$

${\text{FV}} =  \mp 1300$

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

${\text{C/Y}} = 4$     (A1)(M1)

Note: Award (A1) for 1300 seen, (M1) for the other correct entries.

 

OR

${\text{I}}\%  = 5$

${\text{PV}} =  \pm 1000$

${\text{FV}} =  \mp 1300$

${\text{P/Y}} = 4$

${\text{C/Y}} = 4$     (A1)(M1)

Note: Award (A1) for 1300 seen, (M1) for the other correct entries.

 

OR

Sketch drawn of two appropriate lines which intersect at a point

Note: Award (M1) for a sketch with a straight line intercepted by appropriate curve, (A1) for a numerical answer in the range $5.2-5.6$.

 

$t = 5.28{\text{ (years)}}\;\;\;(5.28001 \ldots )$     (A1) (C3)

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