| Date | November 2007 | Marks available | 3 | Reference code | 07N.1.sl.TZ0.6 |
| Level | SL only | Paper | 1 | Time zone | TZ0 |
| Command term | Calculate | Question number | 6 | Adapted from | N/A |
Question
Ben inherits $6500. Ben invests his money in a bank that pays compound interest at a rate of 4.5% per annum.
Calculate the value of Ben’s investment at the end of 6 years. Give your answer correct to 2 decimal places.
Markscheme
\({\text{Ben Amount}} = 6500{\left( {1 + \frac{{4.5}}{{100}}} \right)^6}\) (M1)(A1)
\( = $8464.69\) (A1)
(M1)(A1)(A0) if interest only found (=$1964.69) (C3)
[3 marks]
Examiners report
This question was also well done. However many candidates only gave the interest instead of the total investment. Some also lost a mark by failing to give the answer to part (b) to two decimal places.
Syllabus sections
Topic 1 - Number and algebra » 1.9 » Financial applications of geometric sequences and series: compound interest.
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