Solution - Compound interest (basic)

25529.35

25529.35

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 2, 968$ , $r = 9 %$ , $n = 12$ , $t = 24$ .

Compute period rate and exponent: $\frac{r}{n} = 0.0075$ , $n t = 288$ , so the growth factor is $8.6015315408$ .

Multiply principal by growth factor: $2, 968$ × $8.6015315408$ = $25529.35$ .

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.