Solution - Compound interest (basic)

12310.09

12310.09

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 8, 600$ , $r = 9 %$ , $n = 12$ , $t = 4$ .

Compute period rate and exponent: $\frac{r}{n} = 0.0075$ , $n t = 48$ , so the growth factor is $1.4314053333$ .

Multiply principal by growth factor: $8, 600$ × $1.4314053333$ = $12310.09$ .

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