Solution - Compound interest (basic)

54829.70

54829.70

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 4, 871$ , $r = 9 %$ , $n = 12$ , $t = 27$ .

Compute period rate and exponent: $\frac{r}{n} = 0.0075$ , $n t = 324$ , so the growth factor is $11.2563544337$ .

Multiply principal by growth factor: $4, 871$ × $11.2563544337$ = $54829.70$ .

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.