Hong has $4000 to invest.
She invests $2000 at a rate of 2.5% per year simple interest.
She also invests $2000 at a rate of 2% per year compound interest.
i) Find the value of each investment at the end of 8 years.
Simple interest investment $ ....................................................
Compound interest investment $ ................................................[5]
ii) Find the overall percentage increase in the $4000 investment at the end of 8 years.
............................................% [2]
Find the number of complete years it takes for the compound interest investment of $2000 to become greater than $2500.
[3]
Did this page help you?