Solution - Compound interest (basic)

16855.03

16855.03

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 10, 025$ , $r = 2 %$ , $n = 12$ , $t = 26$ .

Compute period rate and exponent: $\frac{r}{n} = 0.0016666667$ , $n t = 312$ , so the growth factor is $1.6812997375$ .

Multiply principal by growth factor: $10, 025$ × $1.6812997375$ = $16855.03$ .

Was this explanation helpful?

How did we do?

Learn more with Tiger

Compound interest appears in savings, loans, and investments. Understanding it builds strong financial literacy.