Solution - Compound interest (basic)

24977.19

24977.19

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 18, 538$ , $r = 5 %$ , $n = 4$ , $t = 6$ .

Compute period rate and exponent: $\frac{r}{n} = 0.0125$ , $n t = 24$ , so the growth factor is $1.3473510504$ .

Multiply principal by growth factor: $18, 538$ × $1.3473510504$ = $24977.19$ .

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.