Solution - Compound interest (basic)

6238.36

6238.36

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 1, 117$ , $r = 7 %$ , $n = 2$ , $t = 25$ .

Compute period rate and exponent: $\frac{r}{n} = 0.035$ , $n t = 50$ , so the growth factor is $5.5849268557$ .

Multiply principal by growth factor: $1, 117$ × $5.5849268557$ = $6238.36$ .

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