Solution - Compound interest (basic)

25151.16

25151.16

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 16, 560$ , $r = 2 %$ , $n = 2$ , $t = 21$ .

Compute period rate and exponent: $\frac{r}{n} = 0.01$ , $n t = 42$ , so the growth factor is $1.5187898946$ .

Multiply principal by growth factor: $16, 560$ × $1.5187898946$ = $25151.16$ .

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.