Solution - Compound interest (basic)

4238.70

4238.70

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 3, 634$ , $r = 8 %$ , $n = 1$ , $t = 2$ .

Compute period rate and exponent: $\frac{r}{n} = 0.08$ , $n t = 2$ , so the growth factor is $1.1664$ .

Multiply principal by growth factor: $3, 634$ × $1.1664$ = $4238.70$ .

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