Solution - Compound interest (basic)

28695.78

28695.78

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 11, 092$ , $r = 4 %$ , $n = 2$ , $t = 24$ .

Compute period rate and exponent: $\frac{r}{n} = 0.02$ , $n t = 48$ , so the growth factor is $2.5870703855$ .

Multiply principal by growth factor: $11, 092$ × $2.5870703855$ = $28695.78$ .

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.