Solution - Compound interest (basic)

27515.81

27515.81

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 16, 042$ , $r = 2 %$ , $n = 12$ , $t = 27$ .

Compute period rate and exponent: $\frac{r}{n} = 0.0016666667$ , $n t = 324$ , so the growth factor is $1.7152356894$ .

Multiply principal by growth factor: $16, 042$ × $1.7152356894$ = $27515.81$ .

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