document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=40348>Question 40348</A>: <I><SPAN STYLE=\"word-break: break-all;\"> 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 principle the following year?\r<BR>\n" );
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document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #25836 by </B><A HREF=/tutors/aboutme.mpl?userid=Nate><B>Nate(3500)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Nate><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/images/nopicture.jpg><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=25836\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> I = PRT<BR>\n" );
document.write( "I = 1000*0.07*1 = 70<BR>\n" );
document.write( "now ...<BR>\n" );
document.write( "I = PRT = 1070*0.07*1 = 74.9<BR>\n" );
document.write( "or<BR>\n" );
document.write( "P(a) = a(1 + r)^t = 1000(1.07)^2 = 1144.9<BR>\n" );
document.write( "Throughout the time, the total interest is $144.9 </SPAN>\n" );
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