Question 1
18 marks
Two investment accounts: an arithmetic sequence of interest against compound interest
- Number and algebra
(a)
3 marks
(i) The interest goes 200, 260, 320, so the common difference is 60.
(ii) The interest at the end of the 10th year.
(b)
3 marks
The total after years is the initial 5000 plus the sum of the first interest payments.
(c)
2 marks
Put .
(d)
4 marks
(i) 6.5% interest each year.
(ii) After 10 years Account 2 has
Since , Account 1 has more money than Account 2 after 10 years.
(e)
3 marks
Find the first whole year with . Use a graph or table on the calculator, where the crossing is at .
(f)
3 marks
After 39 years Account 2 has .

