Solution - Compound interest (basic)

168109.09

168109.09

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 23, 421$ , $r = 11 %$ , $n = 12$ , $t = 18$ .

Compute period rate and exponent: $\frac{r}{n} = 0.0091666667$ , $n t = 216$ , so the growth factor is $7.1777077688$ .

Multiply principal by growth factor: $23, 421$ × $7.1777077688$ = $168109.09$ .

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.