Solution - Compound interest (basic)

40939.12

40939.12

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 22, 667$ , $r = 3 %$ , $n = 1$ , $t = 20$ .

Compute period rate and exponent: $\frac{r}{n} = 0.03$ , $n t = 20$ , so the growth factor is $1.8061112347$ .

Multiply principal by growth factor: $22, 667$ × $1.8061112347$ = $40939.12$ .

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