Compound Quarterly (business math)

Question

Find the total value of the investment if I invest $21,000 at 13.6% compounded quarterly for 4 years. 

Answer 1

James - Do you know the appropriate formula? 

 

It is F = P (1+ r/n) ^nt

 

F = Future Value

P = Present Value

r = interest rate (as a decimal) 

n= compounding times per year

t = number of years

 

I'm guessing it's the bit about quarterly compounding that is tripping you up? 

That just means that the interest is paid 4 times per year. 

 

F= 21,000[1+(.136/40)]^4*4

 

Can you do the calculation?