Question

A=$25,000 (1+.04/2)^2.7 Cannot seem to come up with right answer no matter which way I figure it

Answer 1

I get $26,373 (rounded)

Answer 2

That's what i got and it says it is wrong

Answer 3

26,373.057 is the answer. You need to remember the order of operations. Divide .04/2 first, which is .02. Then 1+.02, which is 1.02. Then 1.02^2.7, which is 1.05492228. Then multiply 1.05492228 by 25,000, and you will get 26,373.057.

Order of operations PEMDAS Parentheses, Exponents, Multiply, Divide, Add, Subtract (or you can remember "Please Excuse My Dear Aunt Sally")

Answer 4

The source of the question probably intended to write the question a different way.or the answer in your source is incorrect (it happens a lot).

Answer 5

the reply to my wrong answer says recall that semiannual compounding takes place twice a year.

Answer 6

it is figuring compounded interest with the P = 25,000 the rate is 4% or .04 the term is 7 years compounded semiannually. i used the formula A = P(1+r/n)^nt. Is that right

Answer 7

i got 26,373.06

Answer 8

I finally figured it out and got the answer they got. We did not multiply the exponents