The formula to calculate the present amount including compound interest is A = P(1 +

NOTE : It is assumed that the interest rate quoted is an ANNUAL rate and not a QUARTERLY rate.

In the question, P = 1400, r = 0.16, t = 6, and n = 4

Then the Maturity Value (A) = 1400(1 +

^{r/}_{n})^{nt}, where P is the principal amount, r is the annual rate expressed as a decimal , t is the number of years, and n is number of times per year that interest is compounded.NOTE : It is assumed that the interest rate quoted is an ANNUAL rate and not a QUARTERLY rate.

In the question, P = 1400, r = 0.16, t = 6, and n = 4

Then the Maturity Value (A) = 1400(1 +

^{0.16}/_{4})^{(4x6) }= 1400(1.04)^{24 }= $3588.63