Step 1: Make sure 7-Zip is installed on your workstation.
Step 2: Right click on the compressed file you wish to extract (for the purpose of this demo we will be using a 7z file type). Then hover your cursor over the 7-Zip option and select Extract Here or Extract files... (depending on where you wish store the files).
Step 3: If the file is encrypted you will then be prompted to enter the password. If not your files will extract to your chosen directory.
Step 4: If you wish to send the extracted files to another folder by using the Extract files... option, simply enter the desired location into the Extract to: text box also the entering the password into the password text box then select OK.