A residents' association places £8,000 in a reserve account. The account pays compound interest at 5% in the first year and 4% in the second year. After the first year's interest has been added, the association withdraws £1,000.
Calculate how much reserve money remains in the account after the second year's interest has been added.
60 exam-style questions on AQA GCSE Economics 2.5 The role of money and financial markets, covering 2.5.1a Functions of money, 2.5.1b Definition of money, 2.5.2a Agents in the financial sector, 2.5.2b The role of the Bank of England, and 2.5.2c The role of high street banks. Each one has a worked solution and a mark scheme showing where the marks go.