Solution - Compound interest (basic)

33276.81

33276.81

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 12, 982$ , $r = 4 %$ , $n = 1$ , $t = 24$ .

Compute period rate and exponent: $\frac{r}{n} = 0.04$ , $n t = 24$ , so the growth factor is $2.5633041649$ .

Multiply principal by growth factor: $12, 982$ × $2.5633041649$ = $33276.81$ .

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.