Solution - Compound interest (basic)

40324.23

40324.23

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 21, 709$ , $r = 7 %$ , $n = 2$ , $t = 9$ .

Compute period rate and exponent: $\frac{r}{n} = 0.035$ , $n t = 18$ , so the growth factor is $1.8574891955$ .

Multiply principal by growth factor: $21, 709$ × $1.8574891955$ = $40324.23$ .

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.