Solution - Compound interest (basic)

23174.02

23174.02

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 19, 020$ , $r = 5 %$ , $n = 2$ , $t = 4$ .

Compute period rate and exponent: $\frac{r}{n} = 0.025$ , $n t = 8$ , so the growth factor is $1.2184028975$ .

Multiply principal by growth factor: $19, 020$ × $1.2184028975$ = $23174.02$ .

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