Solution - Compound interest (basic)

32936.48

32936.48

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 14, 000$ , $r = 13 %$ , $n = 1$ , $t = 7$ .

Compute period rate and exponent: $\frac{r}{n} = 0.13$ , $n t = 7$ , so the growth factor is $2.3526054804$ .

Multiply principal by growth factor: $14, 000$ × $2.3526054804$ = $32936.48$ .

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.