Solution - Compound interest (basic)

37238.25

37238.25

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 5, 335$ , $r = 7 %$ , $n = 4$ , $t = 28$ .

Compute period rate and exponent: $\frac{r}{n} = 0.0175$ , $n t = 112$ , so the growth factor is $6.9799900654$ .

Multiply principal by growth factor: $5, 335$ × $6.9799900654$ = $37238.25$ .

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.