Solution - Compound interest (basic)

861.41

861.41

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 504$ , $r = 3 %$ , $n = 2$ , $t = 18$ .

Compute period rate and exponent: $\frac{r}{n} = 0.015$ , $n t = 36$ , so the growth factor is $1.7091395381$ .

Multiply principal by growth factor: $504$ × $1.7091395381$ = $861.41$ .

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