Solution - Compound interest (basic)

150165.34

150165.34

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 23, 431$ , $r = 7 %$ , $n = 2$ , $t = 27$ .

Compute period rate and exponent: $\frac{r}{n} = 0.035$ , $n t = 54$ , so the growth factor is $6.4088320237$ .

Multiply principal by growth factor: $23, 431$ × $6.4088320237$ = $150165.34$ .

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