Solution - Compound interest (basic)

3261.21

3261.21

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 2, 653$ , $r = 7 %$ , $n = 2$ , $t = 3$ .

Compute period rate and exponent: $\frac{r}{n} = 0.035$ , $n t = 6$ , so the growth factor is $1.2292553263$ .

Multiply principal by growth factor: $2, 653$ × $1.2292553263$ = $3261.21$ .

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