Solution - Compound interest (basic)

39806.02

39806.02

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 20, 674$ , $r = 14 %$ , $n = 1$ , $t = 5$ .

Compute period rate and exponent: $\frac{r}{n} = 0.14$ , $n t = 5$ , so the growth factor is $1.9254145824$ .

Multiply principal by growth factor: $20, 674$ × $1.9254145824$ = $39806.02$ .

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.