Solution - Compound interest (basic)

20487.64

20487.64

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 14, 885$ , $r = 4 %$ , $n = 12$ , $t = 8$ .

Compute period rate and exponent: $\frac{r}{n} = 0.0033333333$ , $n t = 96$ , so the growth factor is $1.3763951192$ .

Multiply principal by growth factor: $14, 885$ × $1.3763951192$ = $20487.64$ .

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