Solution - Compound interest (basic)

26446.19

26446.19

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 23, 023$ , $r = 2 %$ , $n = 1$ , $t = 7$ .

Compute period rate and exponent: $\frac{r}{n} = 0.02$ , $n t = 7$ , so the growth factor is $1.1486856676$ .

Multiply principal by growth factor: $23, 023$ × $1.1486856676$ = $26446.19$ .

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