Solution - Compound interest (basic)

67559.93

67559.93

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 11, 800$ , $r = 7 %$ , $n = 12$ , $t = 25$ .

Compute period rate and exponent: $\frac{r}{n} = 0.0058333333$ , $n t = 300$ , so the growth factor is $5.7254182093$ .

Multiply principal by growth factor: $11, 800$ × $5.7254182093$ = $67559.93$ .

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