Solution - Compound interest (basic)

12610.63

12610.63

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 8, 890$ , $r = 6 %$ , $n = 1$ , $t = 6$ .

Compute period rate and exponent: $\frac{r}{n} = 0.06$ , $n t = 6$ , so the growth factor is $1.4185191123$ .

Multiply principal by growth factor: $8, 890$ × $1.4185191123$ = $12610.63$ .

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.