Solution - Compound interest (basic)

25459.15

25459.15

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 22, 607$ , $r = 4 %$ , $n = 2$ , $t = 3$ .

Compute period rate and exponent: $\frac{r}{n} = 0.02$ , $n t = 6$ , so the growth factor is $1.1261624193$ .

Multiply principal by growth factor: $22, 607$ × $1.1261624193$ = $25459.15$ .

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.