Solution - Compound interest (basic)

27487.82

27487.82

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 20, 986$ , $r = 1 %$ , $n = 12$ , $t = 27$ .

Compute period rate and exponent: $\frac{r}{n} = 0.0008333333$ , $n t = 324$ , so the growth factor is $1.3098171698$ .

Multiply principal by growth factor: $20, 986$ × $1.3098171698$ = $27487.82$ .

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.