Solution - Compound interest (basic)

26274.11

26274.11

Step-by-step explanation

Use $A = P {(1 + r / n)}^{[PARSE ERROR: Undefined("EOF")]}$ .

Compute period rate and exponent: $\frac{r}{n} = 0.0075$ , $n t = 20$ , so the growth factor is $1.1611841423$ .

Multiply principal by growth factor: $22, 627$ × $1.1611841423$ = $26274.11$ .

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.