Solution - Compound interest (basic)

28566.33

28566.33

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 21, 595$ , $r = 2 %$ , $n = 12$ , $t = 14$ .

Compute period rate and exponent: $\frac{r}{n} = 0.0016666667$ , $n t = 168$ , so the growth factor is $1.3228214606$ .

Multiply principal by growth factor: $21, 595$ × $1.3228214606$ = $28566.33$ .

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