Solution - Compound interest (basic)

196708.63

196708.63

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 18, 059$ , $r = 12 %$ , $n = 12$ , $t = 20$ .

Compute period rate and exponent: $\frac{r}{n} = 0.01$ , $n t = 240$ , so the growth factor is $10.8925536539$ .

Multiply principal by growth factor: $18, 059$ × $10.8925536539$ = $196708.63$ .

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