Solution - Compound interest (basic)

8731.96

8731.96

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 1, 881$ , $r = 13 %$ , $n = 4$ , $t = 12$ .

Compute period rate and exponent: $\frac{r}{n} = 0.0325$ , $n t = 48$ , so the growth factor is $4.6421898296$ .

Multiply principal by growth factor: $1, 881$ × $4.6421898296$ = $8731.96$ .

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.