23.You plan to save $1,400 for the next four years, beginning now, to pay for a vacation. If you can invest it at 6 percent, how much will you have at the end of four years

Answer 1

That six percent is compounded
end of year 1
1.06 * 1400
end of year 2
1.06*1400 + 1.06^2*1400
end of year 3
1.06*1400 + 1.06^2*1400 + 1.06^3*1400
end of year 4
1.06*1400 + 1.06^2*1400 + 1.06^3*1400 +1.06^4*1400

= 1400 (1.06+1.06^2+1.06^3+1.06^4)