Solution - Compound interest (basic)

38245.21

38245.21

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 23, 245$ , $r = 10 %$ , $n = 12$ , $t = 5$ .

Compute period rate and exponent: $\frac{r}{n} = 0.0083333333$ , $n t = 60$ , so the growth factor is $1.6453089348$ .

Multiply principal by growth factor: $23, 245$ × $1.6453089348$ = $38245.21$ .

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.