Edexcel C2 2010 January — Question 6

Exam BoardEdexcel
ModuleC2 (Core Mathematics 2)
Year2010
SessionJanuary
TopicGeometric Sequences and Series

6. A car was purchased for \(\pounds 18000\) on 1 st January. On 1st January each following year, the value of the car is \(80 \%\) of its value on 1st January in the previous year.
  1. Show that the value of the car exactly 3 years after it was purchased is \(\pounds 9216\). The value of the car falls below \(\pounds 1000\) for the first time \(n\) years after it was purchased.
  2. Find the value of \(n\). An insurance company has a scheme to cover the maintenance of the car. The cost is \(\pounds 200\) for the first year, and for every following year the cost increases by \(12 \%\) so that for the 3rd year the cost of the scheme is \(\pounds 250.88\)
  3. Find the cost of the scheme for the 5th year, giving your answer to the nearest penny.
  4. Find the total cost of the insurance scheme for the first 15 years.
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