4MA1/1HR Jun 2025, Question 11: Compound Interest
Pearson Edexcel International GCSE Mathematics A 4MA1 · Paper 1HR (Higher) · Calculator · 5 marks
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The question, in short
Compare interest from two banks over 2 years: Bank A gives $2500 with interest in ratio 20:3 to the investment, Bank B gives $3000 at 4% compound interest yearly. 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
- 4375 − 244.80 = 130.20
Answer130.20
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