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

$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.

What is accounting

Accounting is a process of recording, classifying, summarizing, interpreting, and communicating financial information in a business or organization. It involves keeping track of financial transactions, preparing financial statements, and analyzing financial data to provide information for decision-making purposes. The main objective of accounting is to provide accurate and reliable financial information that can be used to manage the day-to-day operations of a business, assess its financial health, and make strategic decisions that affect its future.

:) I assumed that you were explaining step by step.

1262.47