Solution - Compound interest (basic)

9056.28

9056.28

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 1, 384$ , $r = 11 %$ , $n = 1$ , $t = 18$ .

Compute period rate and exponent: $\frac{r}{n} = 0.11$ , $n t = 18$ , so the growth factor is $6.5435529065$ .

Multiply principal by growth factor: $1, 384$ × $6.5435529065$ = $9056.28$ .

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.