Posted by Monique on Sunday, December 28, 2008 at 6:11pm.
$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.
or
$1,000 * 1.06 * 1.06 * 1.06 * 1.06
= $1,000 * 1.06^4
= $1,262.48
=
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.
:) I assumed that you were explaining step by step.
1262.47
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