Solution - Compound interest (basic)

27620.32

27620.32

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 22, 623$ , $r = 5 %$ , $n = 12$ , $t = 4$ .

Compute period rate and exponent: $\frac{r}{n} = 0.0041666667$ , $n t = 48$ , so the growth factor is $1.220895355$ .

Multiply principal by growth factor: $22, 623$ × $1.220895355$ = $27620.32$ .

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