Solution - Compound interest (basic)

23040.98

23040.98

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 21, 509$ , $r = 7 %$ , $n = 2$ , $t = 1$ .

Compute period rate and exponent: $\frac{r}{n} = 0.035$ , $n t = 2$ , so the growth factor is $1.071225$ .

Multiply principal by growth factor: $21, 509$ × $1.071225$ = $23040.98$ .

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