Solution - Compound interest (basic)

24326.33

24326.33

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 14, 770$ , $r = 5 %$ , $n = 12$ , $t = 10$ .

Compute period rate and exponent: $\frac{r}{n} = 0.0041666667$ , $n t = 120$ , so the growth factor is $1.6470094977$ .

Multiply principal by growth factor: $14, 770$ × $1.6470094977$ = $24326.33$ .

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.