Solution - Compound interest (basic)

89421.16

89421.16

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 13, 795$ , $r = 9 %$ , $n = 4$ , $t = 21$ .

Compute period rate and exponent: $\frac{r}{n} = 0.0225$ , $n t = 84$ , so the growth factor is $6.4821429025$ .

Multiply principal by growth factor: $13, 795$ × $6.4821429025$ = $89421.16$ .

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.