Solution - Compound interest (basic)

373641.57

373641.57

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 19, 652$ , $r = 15 %$ , $n = 4$ , $t = 20$ .

Compute period rate and exponent: $\frac{r}{n} = 0.0375$ , $n t = 80$ , so the growth factor is $19.0129029216$ .

Multiply principal by growth factor: $19, 652$ × $19.0129029216$ = $373641.57$ .

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.