Solution - Compound interest (basic)

60077.25

60077.25

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 21, 308$ , $r = 8 %$ , $n = 12$ , $t = 13$ .

Compute period rate and exponent: $\frac{r}{n} = 0.0066666667$ , $n t = 156$ , so the growth factor is $2.8194692672$ .

Multiply principal by growth factor: $21, 308$ × $2.8194692672$ = $60077.25$ .

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.