Solution - Compound interest (basic)

12725.26

12725.26

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 8, 159$ , $r = 5 %$ , $n = 2$ , $t = 9$ .

Compute period rate and exponent: $\frac{r}{n} = 0.025$ , $n t = 18$ , so the growth factor is $1.5596587177$ .

Multiply principal by growth factor: $8, 159$ × $1.5596587177$ = $12725.26$ .

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