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1.04^3 (this is how it is expressed) means 1.04 x 1.04 x 1.04
1.04 x 1.04 = 1.0816
1.0816 x 1.04 = 1.124864
The answer is 1.04^3 = 1.124864
Note: If you are concerned with significant digits the answer would be: 1.12
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