# math

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

• math -

\$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.

• math -

or
\$1,000 * 1.06 * 1.06 * 1.06 * 1.06

= \$1,000 * 1.06^4

= \$1,262.48

=

• math -

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 -

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

• math -

1262.47

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