Solution - Compound interest (basic)

101823.83

101823.83

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 21, 115$ , $r = 6 %$ , $n = 1$ , $t = 27$ .

Compute period rate and exponent: $\frac{r}{n} = 0.06$ , $n t = 27$ , so the growth factor is $4.8223459407$ .

Multiply principal by growth factor: $21, 115$ × $4.8223459407$ = $101823.83$ .

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.