Solution - Compound interest (basic)

28308.48

28308.48

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 24, 388$ , $r = 5 %$ , $n = 4$ , $t = 3$ .

Compute period rate and exponent: $\frac{r}{n} = 0.0125$ , $n t = 12$ , so the growth factor is $1.1607545177$ .

Multiply principal by growth factor: $24, 388$ × $1.1607545177$ = $28308.48$ .

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.