Solution - Compound interest (basic)

1921.79

1921.79

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 714$ , $r = 4 %$ , $n = 2$ , $t = 25$ .

Compute period rate and exponent: $\frac{r}{n} = 0.02$ , $n t = 50$ , so the growth factor is $2.6915880291$ .

Multiply principal by growth factor: $714$ × $2.6915880291$ = $1921.79$ .

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