Solution - Compound interest (basic)

18013.91

18013.91

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 8, 588$ , $r = 5 %$ , $n = 2$ , $t = 15$ .

Compute period rate and exponent: $\frac{r}{n} = 0.025$ , $n t = 30$ , so the growth factor is $2.0975675791$ .

Multiply principal by growth factor: $8, 588$ × $2.0975675791$ = $18013.91$ .

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