Solution - Compound interest (basic)

25039.40

25039.40

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 9, 618$ , $r = 8 %$ , $n = 12$ , $t = 12$ .

Compute period rate and exponent: $\frac{r}{n} = 0.0066666667$ , $n t = 144$ , so the growth factor is $2.6033892439$ .

Multiply principal by growth factor: $9, 618$ × $2.6033892439$ = $25039.40$ .

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.