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

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

User Szymon Pobiega
by
8.3k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories