Solution - Compound interest (basic)

8364.90

8364.90

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 6, 584$ , $r = 2 %$ , $n = 4$ , $t = 12$ .

Compute period rate and exponent: $\frac{r}{n} = 0.005$ , $n t = 48$ , so the growth factor is $1.2704891611$ .

Multiply principal by growth factor: $6, 584$ × $1.2704891611$ = $8364.90$ .

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