Solution - Compound interest (basic)

3606.04

3606.04

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 1, 982$ , $r = 6 %$ , $n = 12$ , $t = 10$ .

Compute period rate and exponent: $\frac{r}{n} = 0.005$ , $n t = 120$ , so the growth factor is $1.819396734$ .

Multiply principal by growth factor: $1, 982$ × $1.819396734$ = $3606.04$ .

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.