Solution - Compound interest (basic)

6248.92

6248.92

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 4, 532$ , $r = 11 %$ , $n = 2$ , $t = 3$ .

Compute period rate and exponent: $\frac{r}{n} = 0.055$ , $n t = 6$ , so the growth factor is $1.3788428068$ .

Multiply principal by growth factor: $4, 532$ × $1.3788428068$ = $6248.92$ .

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.