Solution - Compound interest (basic)

2389.50

2389.50

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 1, 108$ , $r = 6 %$ , $n = 2$ , $t = 13$ .

Compute period rate and exponent: $\frac{r}{n} = 0.03$ , $n t = 26$ , so the growth factor is $2.1565912675$ .

Multiply principal by growth factor: $1, 108$ × $2.1565912675$ = $2389.50$ .

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