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Solution - Compound interest (basic)

128060.81
128060.81

Other Ways to Solve

Compound interest (basic)

Step-by-step explanation

1. Set up formula

Use A=P(1+r/n)(nt) with P=10,745, r=10%, n=1, t=26.

2. Compute growth factor

Compute period rate and exponent: rn=0.1, nt=26, so the growth factor is 11.9181765377.

3. Evaluate final amount

Multiply principal by growth factor: 10,745 × 11.9181765377 = 128060.81.

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