Solution - Compound interest (basic)

12973.88

12973.88

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 10, 623$ , $r = 1 %$ , $n = 12$ , $t = 20$ .

Compute period rate and exponent: $\frac{r}{n} = 0.0008333333$ , $n t = 240$ , so the growth factor is $1.2213010353$ .

Multiply principal by growth factor: $10, 623$ × $1.2213010353$ = $12973.88$ .

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Compound interest appears in savings, loans, and investments. Understanding it builds strong financial literacy.