After 4 hours: 500 × (1.02)^4 = 500 × 1.08243216 ≈ <<500*1.08243216=541.21608>>541.216

Sat, 02 May 2026 20:16:02 +0000

Understanding the Power of Compound Growth: 500 × (1.02)^4 ≈ 541.22 Have you ever wondered how small, consistent growth can compound into meaningful gains over time? The example 500 × (1.02)^4 ≈ 541.22 illustrates a simple yet powerful illustration of compound growth — a concept widely relevant in finance, investing, and everyday goal planning. ### What Does 500 × (1.02)^4 Mean? This equation calculates how a sum of $500 grows over four hours when compounded at a rate of 2% per hour. Here’s a breakdown of the math: