Solution - Compound interest (basic)

8436.27

8436.27

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 5, 710$ , $r = 10 %$ , $n = 2$ , $t = 4$ .

Compute period rate and exponent: $\frac{r}{n} = 0.05$ , $n t = 8$ , so the growth factor is $1.4774554438$ .

Multiply principal by growth factor: $5, 710$ × $1.4774554438$ = $8436.27$ .

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.