GCSE OCR Maths 3D trigonometry: Azmi invests £700 at a rate of 2

Azmi invests £700 at a rate of 2% per year simple interest - OCR - GCSE Maths - Question 7 - 2023 - Paper 2

Question 7

Azmi invests £700 at a rate of 2% per year simple interest. (a) Work out the interest Azmi receives after one year. (b) Work out the value of Azmi's investment aft... show full transcript

Worked Solution & Example Answer:Azmi invests £700 at a rate of 2% per year simple interest - OCR - GCSE Maths - Question 7 - 2023 - Paper 2

Step 1

(a) Work out the interest Azmi receives after one year.

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Answer

To calculate the interest received after one year, we use the formula for simple interest:

$I = P imes r imes t$

where:

$I$ is the interest,
$P$ is the principal amount (£700),
$r$ is the rate of interest (2% or 0.02),
$t$ is the time in years (1 year).

Substituting these values into the formula gives:

$I = 700 imes 0.02 imes 1 = £14$

Thus, the interest Azmi receives after one year is £14.

Step 2

(b) Work out the value of Azmi's investment after 3 years.

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Answer

To calculate the total value of the investment after 3 years, we first need the total interest earned over that period. Using the same formula for simple interest:

$I = P imes r imes t$

Substituting the values:

$P = 700$ ,
$r = 0.02$ ,
$t = 3$ ,

we find:

$I = 700 imes 0.02 imes 3 = £42$

Now, to find the total value of Azmi's investment, we add the total interest earned to the original principal amount:

$ext{Total Value} = P + I = 700 + 42 = £742$

Therefore, the value of Azmi's investment after 3 years is £742.

Azmi invests £700 at a rate of 2% per year simple interest - OCR - GCSE Maths - Question 7 - 2023 - Paper 2

Worked Solution & Example Answer:Azmi invests £700 at a rate of 2% per year simple interest - OCR - GCSE Maths - Question 7 - 2023 - Paper 2

(a) Work out the interest Azmi receives after one year.

(b) Work out the value of Azmi's investment after 3 years.

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