Solution - Compound interest (basic)

99527.01

99527.01

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 5, 315$ , $r = 11 %$ , $n = 4$ , $t = 27$ .

Compute period rate and exponent: $\frac{r}{n} = 0.0275$ , $n t = 108$ , so the growth factor is $18.7256843837$ .

Multiply principal by growth factor: $5, 315$ × $18.7256843837$ = $99527.01$ .

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.