Solution - Compound interest (basic)

10094.73

10094.73

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 8, 609$ , $r = 2 %$ , $n = 2$ , $t = 8$ .

Compute period rate and exponent: $\frac{r}{n} = 0.01$ , $n t = 16$ , so the growth factor is $1.1725786449$ .

Multiply principal by growth factor: $8, 609$ × $1.1725786449$ = $10094.73$ .

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