Solution - Compound interest (basic)

29454.26

29454.26

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 6, 135$ , $r = 8 %$ , $n = 2$ , $t = 20$ .

Compute period rate and exponent: $\frac{r}{n} = 0.04$ , $n t = 40$ , so the growth factor is $4.8010206279$ .

Multiply principal by growth factor: $6, 135$ × $4.8010206279$ = $29454.26$ .

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