Solution - Compound interest (basic)

20617.63

20617.63

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 6, 575$ , $r = 5 %$ , $n = 4$ , $t = 23$ .

Compute period rate and exponent: $\frac{r}{n} = 0.0125$ , $n t = 92$ , so the growth factor is $3.1357608495$ .

Multiply principal by growth factor: $6, 575$ × $3.1357608495$ = $20617.63$ .

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