Solution - Compound interest (basic)

19140.28

19140.28

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 18, 391$ , $r = 4 %$ , $n = 12$ , $t = 1$ .

Compute period rate and exponent: $\frac{r}{n} = 0.0033333333$ , $n t = 12$ , so the growth factor is $1.0407415429$ .

Multiply principal by growth factor: $18, 391$ × $1.0407415429$ = $19140.28$ .

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.