Solution - Compound interest (basic)

24087.01

24087.01

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 21, 401$ , $r = 3 %$ , $n = 1$ , $t = 4$ .

Compute period rate and exponent: $\frac{r}{n} = 0.03$ , $n t = 4$ , so the growth factor is $1.12550881$ .

Multiply principal by growth factor: $21, 401$ × $1.12550881$ = $24087.01$ .

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