If you invested $100 in a savings bond that yields 4% interest (compounded quarterly) on 1/1/2010, how much would the savings bond be worth on 1/1/2011?
Note that there are four quarterly periods at 1%. You can solve this with Excel, the FV table, or the formulas. The easiest way to show the calculation is FV = 100 x (1.01) x (1.01) x (1.01) x (1.01) = 104.06.
