Solution - Compound interest (basic)

7423.47

7423.47

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 6, 586$ , $r = 6 %$ , $n = 12$ , $t = 2$ .

Compute period rate and exponent: $\frac{r}{n} = 0.005$ , $n t = 24$ , so the growth factor is $1.1271597762$ .

Multiply principal by growth factor: $6, 586$ × $1.1271597762$ = $7423.47$ .

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