Solution - Compound interest (basic)

36446.88

36446.88

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 20, 077$ , $r = 5 %$ , $n = 4$ , $t = 12$ .

Compute period rate and exponent: $\frac{r}{n} = 0.0125$ , $n t = 48$ , so the growth factor is $1.8153548531$ .

Multiply principal by growth factor: $20, 077$ × $1.8153548531$ = $36446.88$ .

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.