Solution - Compound interest (basic)

37974.81

37974.81

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 22, 248$ , $r = 2 %$ , $n = 1$ , $t = 27$ .

Compute period rate and exponent: $\frac{r}{n} = 0.02$ , $n t = 27$ , so the growth factor is $1.7068864766$ .

Multiply principal by growth factor: $22, 248$ × $1.7068864766$ = $37974.81$ .

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