Solution - Compound interest (basic)

36736.63

36736.63

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 16, 670$ , $r = 5 %$ , $n = 2$ , $t = 16$ .

Compute period rate and exponent: $\frac{r}{n} = 0.025$ , $n t = 32$ , so the growth factor is $2.2037569378$ .

Multiply principal by growth factor: $16, 670$ × $2.2037569378$ = $36736.63$ .

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