SOLUTION: Find the final amount of the investment. $10,000 invested at 6% compounded quarterly for 5 1/2 years. (end of problem) I've put this in my TI-83 calculator 20 times... and it s

Question 38631: Find the final amount of the investment. $10,000 invested at 6% compounded quarterly for 5 1/2 years. (end of problem)
I've put this in my TI-83 calculator 20 times... and it still comes out 58,374.99. What am I doing wrong?
I know the formula is A=P(1+r/t)^rt
Can you help?
Found 2 solutions by rapaljer, Earlsdon:
Answer by rapaljer(4671) (Show Source): You can put this solution on YOUR website!
Did you take the 6% and divide by 4 giving you 1.5% or .015 per period?

Did you take 5 1/2 years and multiply times 4 giving you 22 periods of compounding?

If you do those two items, the rest should work out. I am getting this:

R^2 at SCC
Answer by Earlsdon(6294) (Show Source): You can put this solution on YOUR website!
The formula for interest compounded q times per year is:

Where: P = Present value.
A = The amount invested ($10,000.00)
i = The rate of interest, as a decimal (0.06)
q = The number of compounding periods (4)
n = The number of years invested (5.5)
Substituting the above into the formula:

The final amount is:
$13,875.66
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