1,000.00 at 4.5% interest for 2 years

Each year we add 4.5% interest.

4.5% as a decimal is 0.045.

We multiply by 1.045 to add this interest.

(not 0.045, this would just be the interest and wouldn't keep the whole)

To start: $1,000

Multiply by 1.045 for the first year.

Now we have $1,045.

Multiply by 1.045 again for the second year.

Now we're at 1092.025.

We need to round up to the nearest cent ... $1,092.03