Solution - Compound interest (basic)

10686.32

10686.32

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 3, 257$ , $r = 8 %$ , $n = 4$ , $t = 15$ .

Compute period rate and exponent: $\frac{r}{n} = 0.02$ , $n t = 60$ , so the growth factor is $3.2810307884$ .

Multiply principal by growth factor: $3, 257$ × $3.2810307884$ = $10686.32$ .

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.