You want to calculate your new principal from:

Before we start, be sure to convert your interest rate at the time of compounding, 25%, into a decimal by dividing it by 100, so 25% becomes 0.25 for calculation purposes.

Year 1, compounding time #1
  • Current principal is RM 2200.00
  • Interest earned on RM 2200.00 is RM 2200.00 x 0.25 = RM 550.00
  • This makes your new pricipal RM 2200.00 + RM550.00 = RM2750.00
Year 2, compounding time #1
  • Current principal is RM 2750.00
  • Interest earned on RM 2750.00 is RM 2750.00 x 0.25 = RM 687.50
  • This makes your new pricipal RM 2750.00 + RM 687.50 = RM3437.50
Year 3, compounding time #1
  • Current principal is RM 3437.50
  • Interest earned on RM 3437.50 is RM 3437.50 x 0.25 = RM 859.38
  • This makes your new pricipal RM 3437.50 + RM 859.38 = RM4296.88
Year 4, compounding time #1
  • Current principal is RM 4296.88
  • Interest earned on RM 4296.88 is RM 4296.88 x 0.25 = RM 1074.22
  • This makes your new pricipal RM 4296.88 + RM 1074.22 = RM5371.09
Year 5, compounding time #1
  • Current principal is RM 5371.09
  • Interest earned on RM 5371.09 is RM 5371.09 x 0.25 = RM 1342.77
  • This makes your new pricipal RM 5371.09 + RM 1342.77 = RM6713.87
Year 6, compounding time #1
  • Current principal is RM 6713.87
  • Interest earned on RM 6713.87 is RM 6713.87 x 0.25 = RM 1678.47
  • This makes your new pricipal RM 6713.87 + RM 1678.47 = RM8392.33
Year 7, compounding time #1
  • Current principal is RM 8392.33
  • Interest earned on RM 8392.33 is RM 8392.33 x 0.25 = RM 2098.08
  • This makes your new pricipal RM 8392.33 + RM 2098.08 = RM10490.42
Year 8, compounding time #1
  • Current principal is RM 10490.42
  • Interest earned on RM 10490.42 is RM 10490.42 x 0.25 = RM 2622.60
  • This makes your new pricipal RM 10490.42 + RM 2622.60 = RM13113.02
Year 9, compounding time #1
  • Current principal is RM 13113.02
  • Interest earned on RM 13113.02 is RM 13113.02 x 0.25 = RM 3278.26
  • This makes your new pricipal RM 13113.02 + RM 3278.26 = RM16391.28
Year 10, compounding time #1
  • Current principal is RM 16391.28
  • Interest earned on RM 16391.28 is RM 16391.28 x 0.25 = RM 4097.82
  • This makes your new pricipal RM 16391.28 + RM4097.82 = RM20489.10
 
In the end, RM 2200 has turned into RM 20489.10.

You have made RM 18289.10


A = P(1 + r)n

RM 2200.00 x (1+0.25)10=RM 20489.10

Which is the same result obtained in the step-by-step analysis. Wow!