Solution - Compound interest (basic)

8026.21

8026.21

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 3, 550$ , $r = 12 %$ , $n = 2$ , $t = 7$ .

Compute period rate and exponent: $\frac{r}{n} = 0.06$ , $n t = 14$ , so the growth factor is $2.2609039558$ .

Multiply principal by growth factor: $3, 550$ × $2.2609039558$ = $8026.21$ .

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