Solution - Compound interest (basic)

40776.51

40776.51

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 23, 405$ , $r = 7 %$ , $n = 4$ , $t = 8$ .

Compute period rate and exponent: $\frac{r}{n} = 0.0175$ , $n t = 32$ , so the growth factor is $1.7422134922$ .

Multiply principal by growth factor: $23, 405$ × $1.7422134922$ = $40776.51$ .

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.