Solution - Compound interest (basic)

23214.83

23214.83

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 19, 408$ , $r = 1 %$ , $n = 1$ , $t = 18$ .

Compute period rate and exponent: $\frac{r}{n} = 0.01$ , $n t = 18$ , so the growth factor is $1.1961474757$ .

Multiply principal by growth factor: $19, 408$ × $1.1961474757$ = $23214.83$ .

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.