Solution - Compound interest (basic)

39949.77

39949.77

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 16, 297$ , $r = 3 %$ , $n = 4$ , $t = 30$ .

Compute period rate and exponent: $\frac{r}{n} = 0.0075$ , $n t = 120$ , so the growth factor is $2.4513570781$ .

Multiply principal by growth factor: $16, 297$ × $2.4513570781$ = $39949.77$ .

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.