Solution - Compound interest (basic)

976.74

976.74

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 902$ , $r = 1 %$ , $n = 1$ , $t = 8$ .

Compute period rate and exponent: $\frac{r}{n} = 0.01$ , $n t = 8$ , so the growth factor is $1.0828567056$ .

Multiply principal by growth factor: $902$ × $1.0828567056$ = $976.74$ .

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.