Solution - Compound interest (basic)

7153.45

7153.45

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 6, 671$ , $r = 1 %$ , $n = 2$ , $t = 7$ .

Compute period rate and exponent: $\frac{r}{n} = 0.005$ , $n t = 14$ , so the growth factor is $1.0723211319$ .

Multiply principal by growth factor: $6, 671$ × $1.0723211319$ = $7153.45$ .

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.