Solution - Compound interest (basic)

174707.40

174707.40

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 8, 928$ , $r = 13 %$ , $n = 12$ , $t = 23$ .

Compute period rate and exponent: $\frac{r}{n} = 0.0108333333$ , $n t = 276$ , so the growth factor is $19.5684816803$ .

Multiply principal by growth factor: $8, 928$ × $19.5684816803$ = $174707.40$ .

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.