Reminder: Be sure to show your work, and to calculate the period interest before solving.

Reminder: Be sure to show your work, which means you are going to have 6 separate calculations since there are 6 periods.

You will need to calculate the Period Interest Rate before solving (4% is NOT the period interest rate. It is the annual interest rate.)

FV = P(1+R)

R = Period Interest Rate (Divide the interest by the number of periods)

The first calculation has a principal of $1,000, which means P=$1,000

The second calculation will have a new principal that includes the interest earned during the first period ($1,000 + Interest for the first month).

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