Solution - Compound interest (basic)

120924.64

120924.64

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 3, 135$ , $r = 13 %$ , $n = 2$ , $t = 29$ .

Compute period rate and exponent: $\frac{r}{n} = 0.065$ , $n t = 58$ , so the growth factor is $38.5724523254$ .

Multiply principal by growth factor: $3, 135$ × $38.5724523254$ = $120924.64$ .

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.