Compound Future Value

Question

Find the future value and interest earned if $56,780 is invested at 5.3% compounded quarterly for 23 quarters.

 

This is what I have but it just doesn't seem right:

 

A = P(1 + r/n)^tn

 

A = 56780(1 + 0.53/4)^(5.75)(4)

 

A = 993,285.81

^^^ this seems like too large of a number thats why I feel I did something wrong..

 

To find interest I did

993,285.81 - 56,780 = 936,505.81

 

 

Answer 1

In your second line r/n should be 0.053/4.