Solution - Compound interest (basic)

87700.93

87700.93

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 10, 979$ , $r = 8 %$ , $n = 1$ , $t = 27$ .

Compute period rate and exponent: $\frac{r}{n} = 0.08$ , $n t = 27$ , so the growth factor is $7.9880614689$ .

Multiply principal by growth factor: $10, 979$ × $7.9880614689$ = $87700.93$ .

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.