SOLUTION: One thousand dollars in a savings account pays 7% interest per year. The interest earned after the first year is added to the account. How much interest is earned on the new princi

SOLUTION: One thousand dollars in a savings account pays 7% interest per year. The interest earned after the first year is added to the account. How much interest is earned on the new princi

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Question 385482: One thousand dollars in a savings account pays 7% interest per year. The interest earned after the first year is added to the account. How much interest is earned on the new principal the following year?

Answer by unlockmath(1688) (Show Source): You can put this solution on YOUR website!
Hello,
First multiply .07 to 1000 and then add the interest to 1000 and multiply that total by .07 and you'll have your answer.
Got it?
RJ
www.math-unlock.com
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