Solution - Compound interest (basic)

2448.74

2448.74

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 2, 049$ , $r = 2 %$ , $n = 1$ , $t = 9$ .

Compute period rate and exponent: $\frac{r}{n} = 0.02$ , $n t = 9$ , so the growth factor is $1.1950925686$ .

Multiply principal by growth factor: $2, 049$ × $1.1950925686$ = $2448.74$ .

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.