Solution - Compound interest (basic)

18560.25

18560.25

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 6, 597$ , $r = 13 %$ , $n = 12$ , $t = 8$ .

Compute period rate and exponent: $\frac{r}{n} = 0.0108333333$ , $n t = 96$ , so the growth factor is $2.8134374404$ .

Multiply principal by growth factor: $6, 597$ × $2.8134374404$ = $18560.25$ .

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