Solution - Compound interest (basic)

18332.04

18332.04

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 8, 971$ , $r = 3 %$ , $n = 2$ , $t = 24$ .

Compute period rate and exponent: $\frac{r}{n} = 0.015$ , $n t = 48$ , so the growth factor is $2.0434782893$ .

Multiply principal by growth factor: $8, 971$ × $2.0434782893$ = $18332.04$ .

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