Solution - Compound interest (basic)

6938.15

6938.15

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 2, 563$ , $r = 10 %$ , $n = 12$ , $t = 10$ .

Compute period rate and exponent: $\frac{r}{n} = 0.0083333333$ , $n t = 120$ , so the growth factor is $2.7070414909$ .

Multiply principal by growth factor: $2, 563$ × $2.7070414909$ = $6938.15$ .

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.