Solution - Compound interest (basic)

2901.16

2901.16

Step-by-step explanation

Use $A = P {(1 + r / n)}^{[PARSE ERROR: Undefined("EOF")]}$ .

Compute period rate and exponent: $\frac{r}{n} = 0.01$ , $n t = 2$ , so the growth factor is $1.0201$ .

Multiply principal by growth factor: $2, 844$ × $1.0201$ = $2901.16$ .

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