Solution - Compound interest (basic)

88751.74

88751.74

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 2, 376$ , $r = 13 %$ , $n = 12$ , $t = 28$ .

Compute period rate and exponent: $\frac{r}{n} = 0.0108333333$ , $n t = 336$ , so the growth factor is $37.3534241381$ .

Multiply principal by growth factor: $2, 376$ × $37.3534241381$ = $88751.74$ .

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.