Solution - Compound interest (basic)

2726.29

2726.29

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 1, 295$ , $r = 3 %$ , $n = 2$ , $t = 25$ .

Compute period rate and exponent: $\frac{r}{n} = 0.015$ , $n t = 50$ , so the growth factor is $2.1052424206$ .

Multiply principal by growth factor: $1, 295$ × $2.1052424206$ = $2726.29$ .

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.