A community theatre puts £16,000 of its reserves into a savings account paying interest of 2.5% a year. Each year's interest is added to the account and itself earns interest in the following year. The theatre makes no withdrawals. Calculate how much will be in the account at the end of two years.
75 exam-style questions on AQA GCSE Economics 2.1 Introduction to the national economy, covering 2.1.1a What an interest rate is, 2.1.1b Interest rates and consumer decisions, 2.1.1c Interest rates, producer decisions and calculations, 2.1.2a UK government revenue and spending, and 2.1.2b Direct, indirect and progressive taxation. Each one has a worked solution and a mark scheme showing where the marks go.