Solution - Compound interest (basic)

30801.69

30801.69

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 22, 827$ , $r = 3 %$ , $n = 12$ , $t = 10$ .

Compute period rate and exponent: $\frac{r}{n} = 0.0025$ , $n t = 120$ , so the growth factor is $1.3493535472$ .

Multiply principal by growth factor: $22, 827$ × $1.3493535472$ = $30801.69$ .

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.