How do i solve this investment question ?


Question:
Find the accumulated value of an investment of $4000 if the money is compounded quarterly at 5% for 6 years.

the formula is A = P(1 + r/n) ^nt

i got 4000 ( 1.0125) ^ 24

the choices are:

1. $5389.40

2. $25222.69

3. $4881.56

4. $4885.61

but im not getting one of those answers...please help..

Answer:
I get 1. $5389.40

Perhaps you should do 1.0125^24 first, and then multiply the result by the 4000.
Remember order of operations, you need to bring 1.0125 to the 24th power before multiplying.

4000(1.34735)
5389.40
it's number one
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