Katy invests £2000 in a savings account for 3 years.

The account pays compound interest at an annual rate of

2.5% for the first year

x% for the second year

x% for the third year

There is a total amount of £2124.46 in the savings account at the end of 3 years.

(a) Work out the rate of interest in the second year.
















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(4)


Katy goes to work by train.

The cost of her weekly train ticket increases by 12.5% to £225

(b) Work out the cost of her weekly train ticket before this increase.