Solution - Compound interest (basic)

26374.04

26374.04

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 21, 604$ , $r = 2 %$ , $n = 4$ , $t = 10$ .

Compute period rate and exponent: $\frac{r}{n} = 0.005$ , $n t = 40$ , so the growth factor is $1.2207942365$ .

Multiply principal by growth factor: $21, 604$ × $1.2207942365$ = $26374.04$ .

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