Question 1
Paper 2Easy6 marksAt the beginning of year 1, a savings account contains 500 is added to the account. The account pays simple interest at 4% per year on the amount deposited. Interest is withdrawn at the end of each year and is not added to the amount on which interest is calculated.
(a)[1]
Calculate the interest earned in year 2.
(b)[2]
State the first term and the common difference of the sequence of annual interest amounts.
(c)[3]
Hence, write the total interest earned over the first 6 years using sigma notation, and calculate this total.