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Solution - Compound interest (basic)

4577.21

4577.21

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Step-by-step explanation

1. Parse compound interest input

$c i (1299, 13, 2, 10)$

Operation detected: compound interest basic.

$c i (1299, 13, 2, 10)$

Read the input parameters and label them as $P, r, n, t$ .

$P = 1299, r = 13 %, n = 2, t = 10$

$\frac{13}{100} = 0.13$

Use the standard compound-interest model with periodic compounding.

$A = P {(1 + r / n)}^{(n t)}$

Plan: compute periodic rate and number of periods, then evaluate the growth factor.

$N e x t c o m p u t e r / n, n t, a n d {(1 + r / n)}^{(n t)} .$

Parse the input values as $P = 1, 299$ , $r = 13 %$ , $n = 2$ , and $t = 10$ ; then select $A = P {(1 + r / n)}^{(n t)}$ .

2. Compute period rate and growth factor

$\frac{r}{n} = 0.065$

$n t = 20$

${(1 + r / n)}^{(n t)}$

Substitute the computed values into the growth-factor expression.

${(1 + r / n)}^{(n t)}$

${(1 + 0.065)}^{20} = 3.5236450635$

The growth factor is ready; now multiply by the principal.

$3.5236450635$

Convert annual rate to decimal, compute $\frac{r}{n}$ and $n t$ , then evaluate ${(1 + r / n)}^{(n t)}$ .

3. Conclude final amount

$A = 4577.21$

$4577.21$

Conclusion: this is the accumulated amount after compounding.

$4577.21$

Study tip: keep rate and time units consistent (annual rate with periods per year).

$4577.21$

Multiply the principal by the growth factor to get the final amount $A$ .

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Compound interest appears in savings, loans, and investments. Understanding it builds strong financial literacy.

Terms and topics

Compound interest (basic)

Solution - Compound interest (basic)

Step-by-step explanation

1. Parse compound interest input

2. Compute period rate and growth factor

3. Conclude final amount

Why learn this

Terms and topics

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