When calculating accrued interest over several years that compounds annually, you must

When calculating accrued interest over several years that compounds annually, you must calculate a new principle each year, adding the accrued interest from the previous year. At the beginning of the new interest period, all the accrued interest is added to the principal which forms a new principle figure that the interest is then counted on. 

The clear answer is clearly 25 is very clear to me

820,000 is the answr