Solution - Compound interest (basic)

14308.64

14308.64

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 13, 344$ , $r = 7 %$ , $n = 12$ , $t = 1$ .

Compute period rate and exponent: $\frac{r}{n} = 0.0058333333$ , $n t = 12$ , so the growth factor is $1.0722900809$ .

Multiply principal by growth factor: $13, 344$ × $1.0722900809$ = $14308.64$ .

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