Solution - Compound interest (basic)

4659.84

4659.84

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 3, 562$ , $r = 1 %$ , $n = 1$ , $t = 27$ .

Compute period rate and exponent: $\frac{r}{n} = 0.01$ , $n t = 27$ , so the growth factor is $1.3082088781$ .

Multiply principal by growth factor: $3, 562$ × $1.3082088781$ = $4659.84$ .

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.