Solution - Compound interest (basic)

111590.48

111590.48

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 8, 378$ , $r = 10 %$ , $n = 12$ , $t = 26$ .

Compute period rate and exponent: $\frac{r}{n} = 0.0083333333$ , $n t = 312$ , so the growth factor is $13.3194647209$ .

Multiply principal by growth factor: $8, 378$ × $13.3194647209$ = $111590.48$ .

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.