Solution - Compound interest (basic)

7396.88

7396.88

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 5, 604$ , $r = 7 %$ , $n = 4$ , $t = 4$ .

Compute period rate and exponent: $\frac{r}{n} = 0.0175$ , $n t = 16$ , so the growth factor is $1.3199293512$ .

Multiply principal by growth factor: $5, 604$ × $1.3199293512$ = $7396.88$ .

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