Solution - Compound interest (basic)

13548.54

13548.54

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 5, 497$ , $r = 4 %$ , $n = 1$ , $t = 23$ .

Compute period rate and exponent: $\frac{r}{n} = 0.04$ , $n t = 23$ , so the growth factor is $2.4647155432$ .

Multiply principal by growth factor: $5, 497$ × $2.4647155432$ = $13548.54$ .

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