Solution - Compound interest (basic)

35358.14

35358.14

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 18, 878$ , $r = 8 %$ , $n = 2$ , $t = 8$ .

Compute period rate and exponent: $\frac{r}{n} = 0.04$ , $n t = 16$ , so the growth factor is $1.8729812457$ .

Multiply principal by growth factor: $18, 878$ × $1.8729812457$ = $35358.14$ .

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.