Solution - Compound interest (basic)

258525.98

258525.98

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 16, 823$ , $r = 10 %$ , $n = 2$ , $t = 28$ .

Compute period rate and exponent: $\frac{r}{n} = 0.05$ , $n t = 56$ , so the growth factor is $15.3674124622$ .

Multiply principal by growth factor: $16, 823$ × $15.3674124622$ = $258525.98$ .

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.