Mathematics 4024 · O Level · Rates

Rates — practice question

(a)[2]

Sofia puts $400 into a savings account. This account pays simple interest at 2.8% per year. Calculate the total amount of interest Sofia receives after 3 years.

(b)[1]

Luis places $400$ in another savings account that also pays simple interest. The interest rate on this account is 0.4% per year higher than the rate in Sofia’s account. Calculate how much more interest Luis receives each year than Sofia receives each year.

Worked solution & mark scheme

This 3-mark question has a full step-by-step worked solution and mark scheme. One marking point: Correct substitution: \(\frac{400\times2.8\times3}{100}\) oe

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