Solution - Compound interest (basic)

14852.38

14852.38

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 11, 711$ , $r = 4 %$ , $n = 2$ , $t = 6$ .

Compute period rate and exponent: $\frac{r}{n} = 0.02$ , $n t = 12$ , so the growth factor is $1.2682417946$ .

Multiply principal by growth factor: $11, 711$ × $1.2682417946$ = $14852.38$ .

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.