Solution - Compound interest (basic)

122385.08

122385.08

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 22, 921$ , $r = 7 %$ , $n = 12$ , $t = 24$ .

Compute period rate and exponent: $\frac{r}{n} = 0.0058333333$ , $n t = 288$ , so the growth factor is $5.3394303571$ .

Multiply principal by growth factor: $22, 921$ × $5.3394303571$ = $122385.08$ .

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