Solution - Compound interest (basic)

23629.00

23629.00

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 22, 704$ , $r = 4 %$ , $n = 12$ , $t = 1$ .

Compute period rate and exponent: $\frac{r}{n} = 0.0033333333$ , $n t = 12$ , so the growth factor is $1.0407415429$ .

Multiply principal by growth factor: $22, 704$ × $1.0407415429$ = $23629.00$ .

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