Solution - Compound interest (basic)

6086.94

6086.94

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 2, 778$ , $r = 8 %$ , $n = 2$ , $t = 10$ .

Compute period rate and exponent: $\frac{r}{n} = 0.04$ , $n t = 20$ , so the growth factor is $2.191123143$ .

Multiply principal by growth factor: $2, 778$ × $2.191123143$ = $6086.94$ .

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.