Solution - Compound interest (basic)

4217.24

4217.24

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 1, 086$ , $r = 11 %$ , $n = 1$ , $t = 13$ .

Compute period rate and exponent: $\frac{r}{n} = 0.11$ , $n t = 13$ , so the growth factor is $3.8832801626$ .

Multiply principal by growth factor: $1, 086$ × $3.8832801626$ = $4217.24$ .

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