Solution - Compound interest (basic)

25270.94

25270.94

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 8, 651$ , $r = 6 %$ , $n = 4$ , $t = 18$ .

Compute period rate and exponent: $\frac{r}{n} = 0.015$ , $n t = 72$ , so the growth factor is $2.9211579607$ .

Multiply principal by growth factor: $8, 651$ × $2.9211579607$ = $25270.94$ .

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