4MA1/1FR Jun 2025, Question 26: Compound Interest
Pearson Edexcel International GCSE Mathematics A 4MA1 · Paper 1FR (Foundation) · Calculator · 5 marks
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The question, in short
Compare interest from two banks over 2 years: Bank A gives a ratio of investment to total interest of 20:3 on $2500; Bank B pays 4% yearly compound on $3000. Find how much more interest Bank A pays.
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Solution · 5 marks
- 1Bank A interest: 2500 ÷ 20 × 3 = 375
- 2Bank B total: 3000 × 1.04² = 3244.80
- 3Bank B interest: 3244.80 − 3000 = 244.80
- 4Difference: 375 − 244.80
- 5= $130.20
Answer130.20
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