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

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