Solution - Compound interest (basic)

12303.40

12303.40

Step-by-step explanation

Use $A = P {(1 + r / n)}^{[PARSE ERROR: Undefined("EOF")]}$ .

Compute period rate and exponent: $\frac{r}{n} = 0.03$ , $n t = 14$ , so the growth factor is $1.5125897249$ .

Multiply principal by growth factor: $8, 134$ × $1.5125897249$ = $12303.40$ .

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.