Solution - Compound interest (basic)

12673.61

12673.61

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 11, 700$ , $r = 2 %$ , $n = 12$ , $t = 4$ .

Compute period rate and exponent: $\frac{r}{n} = 0.0016666667$ , $n t = 48$ , so the growth factor is $1.0832149311$ .

Multiply principal by growth factor: $11, 700$ × $1.0832149311$ = $12673.61$ .

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