Solution - Compound interest (basic)

6714.75

6714.75

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 5, 959$ , $r = 1 %$ , $n = 1$ , $t = 12$ .

Compute period rate and exponent: $\frac{r}{n} = 0.01$ , $n t = 12$ , so the growth factor is $1.1268250301$ .

Multiply principal by growth factor: $5, 959$ × $1.1268250301$ = $6714.75$ .

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