Solution - Compound interest (basic)

45901.92

45901.92

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 20, 381$ , $r = 7 %$ , $n = 1$ , $t = 12$ .

Compute period rate and exponent: $\frac{r}{n} = 0.07$ , $n t = 12$ , so the growth factor is $2.252191589$ .

Multiply principal by growth factor: $20, 381$ × $2.252191589$ = $45901.92$ .

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