Solution - Compound interest (basic)

2559.88

2559.88

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 2, 227$ , $r = 2 %$ , $n = 2$ , $t = 7$ .

Compute period rate and exponent: $\frac{r}{n} = 0.01$ , $n t = 14$ , so the growth factor is $1.1494742132$ .

Multiply principal by growth factor: $2, 227$ × $1.1494742132$ = $2559.88$ .

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