Solution - Compound interest (basic)

33364.74

33364.74

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 5, 396$ , $r = 8 %$ , $n = 4$ , $t = 23$ .

Compute period rate and exponent: $\frac{r}{n} = 0.02$ , $n t = 92$ , so the growth factor is $6.1832357046$ .

Multiply principal by growth factor: $5, 396$ × $6.1832357046$ = $33364.74$ .

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.