Solution - Compound interest (basic)

7208.72

7208.72

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 4, 627$ , $r = 3 %$ , $n = 1$ , $t = 15$ .

Compute period rate and exponent: $\frac{r}{n} = 0.03$ , $n t = 15$ , so the growth factor is $1.5579674166$ .

Multiply principal by growth factor: $4, 627$ × $1.5579674166$ = $7208.72$ .

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.