Solution - Compound interest (basic)

3003.08

3003.08

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 2, 183$ , $r = 8 %$ , $n = 12$ , $t = 4$ .

Compute period rate and exponent: $\frac{r}{n} = 0.0066666667$ , $n t = 48$ , so the growth factor is $1.3756661004$ .

Multiply principal by growth factor: $2, 183$ × $1.3756661004$ = $3003.08$ .

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