Solution - Compound interest (basic)

21462.04

21462.04

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 2, 555$ , $r = 12 %$ , $n = 4$ , $t = 18$ .

Compute period rate and exponent: $\frac{r}{n} = 0.03$ , $n t = 72$ , so the growth factor is $8.4000172666$ .

Multiply principal by growth factor: $2, 555$ × $8.4000172666$ = $21462.04$ .

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.