Solution - Compound interest (basic)

4146.63

4146.63

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 852$ , $r = 7 %$ , $n = 2$ , $t = 23$ .

Compute period rate and exponent: $\frac{r}{n} = 0.035$ , $n t = 46$ , so the growth factor is $4.8669411006$ .

Multiply principal by growth factor: $852$ × $4.8669411006$ = $4146.63$ .

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.