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Date May 2013 Marks available 3 Reference code 13M.1.sl.TZ2.15
Level SL only Paper 1 Time zone TZ2
Command term Calculate Question number 15 Adapted from N/A

Question

Marcus has been given 500 Australian dollars (AUD) by his grandmother for his 18th birthday.

He plans to deposit it in a bank which offers a nominal annual interest rate of 6.0 %, compounded quarterly, for three years.

Calculate the total amount of interest Marcus would earn, in AUD, over the three years. Give your answer correct to two decimal places.

[3]
a.

Marcus would earn the same amount of interest, compounded annually, for three years if he deposits the 500 AUD in a second bank.

Calculate the interest rate the second bank offers.

[3]
b.

Markscheme

500(1+6100×4)4×3500     (M1)(A1)


Note: Award (M1) for substitution in correct formula (A1) for correct substitutions.


=97.81     (A1)     (C3)


Note: The answer must be given to 2 dp or the final (A1) is not awarded.

a.

97.8090...=500(1+r100)3500     (M1)(A1)(ft)


Note: Award (M1) for substitution in correct formula, (A1)(ft) for their correct substitutions.


=6.14 (6.13635...)     (A1)(ft)     (C3)


Note: Follow through from their answer to part (a).

 

b.

Examiners report

[N/A]
a.
[N/A]
b.

Syllabus sections

Topic 1 - Number and algebra » 1.2 » Approximation: decimal places, significant figures.
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