Solution - Compound interest (basic)

28005.80

28005.80

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 4, 815$ , $r = 9 %$ , $n = 2$ , $t = 20$ .

Compute period rate and exponent: $\frac{r}{n} = 0.045$ , $n t = 40$ , so the growth factor is $5.8163645376$ .

Multiply principal by growth factor: $4, 815$ × $5.8163645376$ = $28005.80$ .

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.