Solution - Compound interest (basic)

120518.24

120518.24

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 23, 577$ , $r = 6 %$ , $n = 1$ , $t = 28$ .

Compute period rate and exponent: $\frac{r}{n} = 0.06$ , $n t = 28$ , so the growth factor is $5.1116866971$ .

Multiply principal by growth factor: $23, 577$ × $5.1116866971$ = $120518.24$ .

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