Question

Northern Bank has two types of account.
Both accounts pay compound interest.



Ali invests £2000 in the cash savings account.
Ben invests £1600 in the shares account.

Work out who will get the most interest by the end of 3 years.

(4 marks)

Answer 1

Answer:

Elevise

Back to Edexcel Maths Higher November

2018 Paper 2 Home

Q4: Answers – Paper 2 November 2018

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Compound Interest Part 1

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Compound Interest

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Working

Question

4) Northern Bank has two types of account. Both accounts pay compound interest.

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Ali invests £2000 in the cash savings

account.

Ben invests £1600 in the shares account.

(a) Work out who will get the most interest by the end of 3 years.

You must show all your working.

[4 marks]

In the 3rd year the rate of interest for the shares account is changed to 4% per annum.

(b) Does this affect who will get the most interest by the end of 3 years?

Give a reason for your answer.