Solution - Compound interest (basic)

30968.87

30968.87

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 15, 397$ , $r = 15 %$ , $n = 1$ , $t = 5$ .

Compute period rate and exponent: $\frac{r}{n} = 0.15$ , $n t = 5$ , so the growth factor is $2.0113571875$ .

Multiply principal by growth factor: $15, 397$ × $2.0113571875$ = $30968.87$ .

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.