Solution - Compound interest (basic)

9496.61

9496.61

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 9, 218$ , $r = 3 %$ , $n = 2$ , $t = 1$ .

Compute period rate and exponent: $\frac{r}{n} = 0.015$ , $n t = 2$ , so the growth factor is $1.030225$ .

Multiply principal by growth factor: $9, 218$ × $1.030225$ = $9496.61$ .

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.