Solution - Compound interest (basic)

35581.02

35581.02

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 18, 997$ , $r = 4 %$ , $n = 1$ , $t = 16$ .

Compute period rate and exponent: $\frac{r}{n} = 0.04$ , $n t = 16$ , so the growth factor is $1.8729812457$ .

Multiply principal by growth factor: $18, 997$ × $1.8729812457$ = $35581.02$ .

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