Solution - Compound interest (basic)

80458.34

80458.34

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 12, 850$ , $r = 14 %$ , $n = 1$ , $t = 14$ .

Compute period rate and exponent: $\frac{r}{n} = 0.14$ , $n t = 14$ , so the growth factor is $6.2613491038$ .

Multiply principal by growth factor: $12, 850$ × $6.2613491038$ = $80458.34$ .

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.