Solution - Compound interest (basic)

122833.72

122833.72

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 23, 021$ , $r = 8 %$ , $n = 12$ , $t = 21$ .

Compute period rate and exponent: $\frac{r}{n} = 0.0066666667$ , $n t = 252$ , so the growth factor is $5.3357249709$ .

Multiply principal by growth factor: $23, 021$ × $5.3357249709$ = $122833.72$ .

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