Solution - Compound interest (basic)

22762.25

22762.25

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 22, 092$ , $r = 3 %$ , $n = 4$ , $t = 1$ .

Compute period rate and exponent: $\frac{r}{n} = 0.0075$ , $n t = 4$ , so the growth factor is $1.0303391907$ .

Multiply principal by growth factor: $22, 092$ × $1.0303391907$ = $22762.25$ .

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.