Exam-Style Question on Finance
A mathematics exam-style question with a worked solution that can be revealed gradually
Question id: 126. This question is similar to one that appeared on a GCSE Higher paper (specimen) for 2017. The use of a calculator is allowed.
Michael Banks invests £2000 in a savings account for two years. The account pays 2% compound interest per annum.
Michael has to pay 15% tax on the interest earned each year. This tax is taken from the account at the end of each year.
How much money will Michael have in his account at the end of the two years? Give your answer to the nearest penny.
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