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