Tommaso and Pietro have each been given 1500 euro to save for college.

METHOD 1

$N=5$	OR	$N=10$
$I\%=2.75$		$I\%=2.75$
$PV=-1500$		$PV=-1500$
$PMT=0$		$PMT=0$
$P/Y=1$		$P/Y=2$
$C/Y=2$		$C/Y=2$

(M1)(A1) Note: Award $\boldsymbol{M1}$ for an attempt to use a financial app in their technology, $\boldsymbol{A1}$ for all entries correct.

METHOD 2

$1500\left(1+\frac{2.75}{2 \times 100}\right)^{2 \times 5}$ (M1)(A1) 1719.49 euro A1

METHOD 1

$N=5$	OR	$N=20$
$PV= \pm 1500$		$PV= \pm 1500$
$FV=\mp 2250$		$FV=\mp 2250$
$PMT=0$		$PMT=0$
$P/Y=1$		$P/Y=4$
$C/Y=4$		$C/Y=4$

Note: Award $\boldsymbol{M1}$ for an attempt to use a financial app in their technology, $\boldsymbol{A1}$ for all entries correct. $PV$ and $FV$ must have opposite signs.

METHOD 2

$1500\left(1+\frac{r}{4 \times 100}\right)^{4 \times 5}=2250$ OR $\left(1+\frac{r}{4 \times 100}\right)^{4 \times 5}=1.5$

Note: Award $\boldsymbol{M1}$ for substitution in compound interest formula, $\boldsymbol{A1}$ for correct substitution and for equating to 2250 (if using LHS equation) or to 1.5 (if using RHS equation).

$r=8.19$ $(8.19206 \ldots)$ A1

Note: Accept $r=8.19\%$. Accept a trial and error method which leads to $r=8.19$.