4MA1/2F Jun 2025, Question 24: Compound Interest
Pearson Edexcel International GCSE Mathematics A 4MA1 · Paper 2F (Foundation) · Calculator · 3 marks
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The question, in short
Calculate the value of a 4000 Swiss franc bracelet after 3 years of 7% annual increase, rounded to the nearest Swiss franc.
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Solution · 3 marks
- 1Multiplier for a 7% increase is 1.07
- 2After 1 year: 4000 × 1.07 = 4280
- 3After 2 years: 4280 × 1.07 = 4579.6
- 4After 3 years: 4579.6 × 1.07 = 4900.172
- 5= 4900 Swiss francs
Answer4900
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