Solution - Compound interest (basic)

11718.36

11718.36

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 11, 260$ , $r = 2 %$ , $n = 4$ , $t = 2$ .

Compute period rate and exponent: $\frac{r}{n} = 0.005$ , $n t = 8$ , so the growth factor is $1.0407070439$ .

Multiply principal by growth factor: $11, 260$ × $1.0407070439$ = $11718.36$ .

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