Solution - Compound interest (basic)

8594.24

8594.24

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 8, 032$ , $r = 7 %$ , $n = 1$ , $t = 1$ .

Compute period rate and exponent: $\frac{r}{n} = 0.07$ , $n t = 1$ , so the growth factor is $1.07$ .

Multiply principal by growth factor: $8, 032$ × $1.07$ = $8594.24$ .

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