Solution - Compound interest (basic)

2782.20

2782.20

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 2, 396$ , $r = 3 %$ , $n = 4$ , $t = 5$ .

Compute period rate and exponent: $\frac{r}{n} = 0.0075$ , $n t = 20$ , so the growth factor is $1.1611841423$ .

Multiply principal by growth factor: $2, 396$ × $1.1611841423$ = $2782.20$ .

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