Solution - Compound interest (basic)

12491.75

12491.75

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 10, 678$ , $r = 8 %$ , $n = 2$ , $t = 2$ .

Compute period rate and exponent: $\frac{r}{n} = 0.04$ , $n t = 4$ , so the growth factor is $1.16985856$ .

Multiply principal by growth factor: $10, 678$ × $1.16985856$ = $12491.75$ .

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.