Solution - Compound interest (basic)

4229.44

4229.44

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 2, 402$ , $r = 3 %$ , $n = 2$ , $t = 19$ .

Compute period rate and exponent: $\frac{r}{n} = 0.015$ , $n t = 38$ , so the growth factor is $1.7607982806$ .

Multiply principal by growth factor: $2, 402$ × $1.7607982806$ = $4229.44$ .

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.