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.

math  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.

math  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
=

math  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.

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

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