Edexcel C2 — Question 3 7 marks

Exam BoardEdexcel
ModuleC2 (Core Mathematics 2)
Marks7
PaperDownload PDF ↗
Mark schemeDownload PDF ↗
TopicExponential Functions
TypeCompound interest and percentage growth
DifficultyEasy -1.2 This is a straightforward C2 exponential question requiring only routine techniques: sketching a standard exponential graph, direct substitution into the formula, and solving a basic logarithmic equation. All three parts are textbook exercises with no problem-solving or novel insight required, making it easier than average.
Spec1.06a Exponential function: a^x and e^x graphs and properties1.06g Equations with exponentials: solve a^x = b

3. Every \(\pounds 1\) of money invested in a savings scheme continuously gains interest at a rate of \(4 \%\) per year. Hence, after \(x\) years, the total value of an initial \(\pounds 1\) investment is \(\pounds y\), where $$y = 1.04 ^ { x }$$
  1. Sketch the graph of \(y = 1.04 ^ { x } , x \geq 0\).
  2. Calculate, to the nearest \(\pounds\), the total value of an initial \(\pounds 800\) investment after 10 years.
  3. Use logarithms to find the number of years it takes to double the total value of any initial investment.

3. Every $\pounds 1$ of money invested in a savings scheme continuously gains interest at a rate of $4 \%$ per year. Hence, after $x$ years, the total value of an initial $\pounds 1$ investment is $\pounds y$, where

$$y = 1.04 ^ { x }$$
\begin{enumerate}[label=(\alph*)]
\item Sketch the graph of $y = 1.04 ^ { x } , x \geq 0$.
\item Calculate, to the nearest $\pounds$, the total value of an initial $\pounds 800$ investment after 10 years.
\item Use logarithms to find the number of years it takes to double the total value of any initial investment.
\end{enumerate}

\hfill \mbox{\textit{Edexcel C2  Q3 [7]}}