Solution - Compound interest (basic)

19703.87

19703.87

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 10, 862$ , $r = 6 %$ , $n = 4$ , $t = 10$ .

Compute period rate and exponent: $\frac{r}{n} = 0.015$ , $n t = 40$ , so the growth factor is $1.8140184087$ .

Multiply principal by growth factor: $10, 862$ × $1.8140184087$ = $19703.87$ .

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.