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10 March, 02:56

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

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  1. 10 March, 03:17
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    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
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