Question

What is this answer??

Answer 1

Here's the "compound amount" formula:

A = P (1 + r/[n]) ^ (nt).

Mama52's comment, above, would be true EXCEPT that the base should be (1 + 0.038/2), which produces a different result:

Thus, the compound amount, with principal $4000, at 3.8%, compounded 2x per year, for 7 years, is

A = $4000 ( 1 + 0.038/2) ^ (7*2), or   $5205.93   (answer)