Solution - Compound interest (basic)

54414.24

54414.24

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 21, 977$ , $r = 12 %$ , $n = 1$ , $t = 8$ .

Compute period rate and exponent: $\frac{r}{n} = 0.12$ , $n t = 8$ , so the growth factor is $2.4759631763$ .

Multiply principal by growth factor: $21, 977$ × $2.4759631763$ = $54414.24$ .

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