Solution - Compound interest (basic)

89016.55

89016.55

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 20, 232$ , $r = 10 %$ , $n = 4$ , $t = 15$ .

Compute period rate and exponent: $\frac{r}{n} = 0.025$ , $n t = 60$ , so the growth factor is $4.3997897488$ .

Multiply principal by growth factor: $20, 232$ × $4.3997897488$ = $89016.55$ .

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.