Posted by **Monique** on Sunday, December 28, 2008 at 6:11pm.

Actually calculate the final amount on $1000 compounded annually at 6% per year for 4 years.

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**Ms. Sue**, Sunday, December 28, 2008 at 6:20pm
$1,000 * 0.06 = $60.00

$1,000 + 60 = 1,060 >> end of year 1

$1,060 * 0.06 = $63.60

$1,060 + 63.60 = $1,123.60 >> end of year 2

You get the idea, and I'm sure can figure out the rest.

We'll be glad to check your answer.

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**Damon**, Sunday, December 28, 2008 at 7:38pm
or

$1,000 * 1.06 * 1.06 * 1.06 * 1.06

= $1,000 * 1.06^4

= $1,262.48

=

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**Ms. Sue**, Sunday, December 28, 2008 at 7:42pm
Thanks, Damon. I thought there was an easier way of doing this problem, but I didn't know what! I sure learn a lot on this board.

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**Damon**, Sunday, December 28, 2008 at 7:49pm
:) I assumed that you were explaining step by step.

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**Jamie**, Tuesday, April 14, 2009 at 4:02pm
1262.47

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