Solution - Compound interest (basic)

394902.25

394902.25

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 18, 938$ , $r = 15 %$ , $n = 2$ , $t = 21$ .

Compute period rate and exponent: $\frac{r}{n} = 0.075$ , $n t = 42$ , so the growth factor is $20.8523736595$ .

Multiply principal by growth factor: $18, 938$ × $20.8523736595$ = $394902.25$ .

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