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Date November 2020 Marks available 3 Reference code 20N.1.SL.TZ0.T_8
Level Standard Level Paper Paper 1 (with calculator from previous syllabus) Time zone Time zone 0
Command term Find Question number T_8 Adapted from N/A

Question

Give your answers in this question correct to the nearest whole number.

Imon invested 25000 Singapore dollars (SGD) in a fixed deposit account with a nominal annual interest rate of 3.6%, compounded monthly.

Calculate the value of Imon’s investment after 5 years.

[3]
a.

At the end of the 5 years, Imon withdrew x SGD from the fixed deposit account and reinvested this into a super-savings account with a nominal annual interest rate of 5.7%, compounded half-yearly.

The value of the super-savings account increased to 20000 SGD after 18 months.

Find the value of x.

[3]
b.

Markscheme

* This question is from an exam for a previous syllabus, and may contain minor differences in marking or structure. It appeared in a paper that permitted the use of a calculator, and so might not be suitable for all forms of practice.

FV= 25000×1+3.6100×1212×5       (M1)(A1)

Note: Award (M1) for substituted compound interest formula, (A1) for correct substitutions.

OR

N=5
I%=3.6
PV=25000
P/Y=1
C/Y=12       (A1)(M1)

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

OR

N=60
I%=3.6
PV=25000
P/Y=12
C/Y=12       (A1)(M1)

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

FV= 29922 SGD      (A1)   (C3)

Note: Do not award the final (A1) if answer is not given correct to the nearest integer.

[3 marks]

a.

20000=PV×1+5.7100×22×1.5       (M1)(A1)

Note: Award (M1) for substituted compound interest equated to 20000. Award (A1) for correct substitutions.

OR

N=1.5
I%=5.7
FV=±20000
P/Y=1
C/Y=2       (A1)(M1)

Note: Award (A1) for C/Y=2 seen, (M1) for all other correct entries.

OR

N=3
I%=5.7
FV=±20000
P/Y=2
C/Y=2       (A1)(M1)

Note: Award (A1) for C/Y=2 seen, (M1) for all other correct entries.

x= 18383 SGD      (A1)   (C3)

Note: Do not award the final (A1) if answer is not given correct to the nearest integer (unless already penalized in part(a)).

[3 marks]

b.

Examiners report

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

Syllabus sections

Topic 1—Number and algebra » SL 1.4—Financial apps – compound int, annual depreciation
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Topic 1—Number and algebra

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