Solution - Compound interest (basic)

2639.33

2639.33

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 1, 998$ , $r = 14 %$ , $n = 12$ , $t = 2$ .

Compute period rate and exponent: $\frac{r}{n} = 0.0116666667$ , $n t = 24$ , so the growth factor is $1.3209871001$ .

Multiply principal by growth factor: $1, 998$ × $1.3209871001$ = $2639.33$ .

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