Solution - Compound interest (basic)

21935.49

21935.49

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 21, 288$ , $r = 3 %$ , $n = 12$ , $t = 1$ .

Compute period rate and exponent: $\frac{r}{n} = 0.0025$ , $n t = 12$ , so the growth factor is $1.0304159569$ .

Multiply principal by growth factor: $21, 288$ × $1.0304159569$ = $21935.49$ .

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