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1200\left(1+\frac{625}{10000}\right)^{2}
Expand \frac{6.25}{100} by multiplying both numerator and the denominator by 100.
1200\left(1+\frac{1}{16}\right)^{2}
Reduce the fraction \frac{625}{10000} to lowest terms by extracting and canceling out 625.
1200\times \left(\frac{17}{16}\right)^{2}
Add 1 and \frac{1}{16} to get \frac{17}{16}.
1200\times \frac{289}{256}
Calculate \frac{17}{16} to the power of 2 and get \frac{289}{256}.
\frac{21675}{16}
Multiply 1200 and \frac{289}{256} to get \frac{21675}{16}.