asked 165k views
3 votes
James invests £700 for 2 years at 10% per year compound interest. How much interest does he earn?

asked
User Darkmage
by
7.5k points

1 Answer

2 votes
We know that James invested 700 for 2 years at interest rate of 10%. To find how much money he made of the interest, we use this formula:
Principal(1+rate)^year
700(1+0.1)^2=
700(1.1)^2=
700(1.21)=
847←The total amount of money he made.
847-700=147←How much money gained

answered
User Szymon Pobiega
by
8.3k points
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