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?

One Thousand Dollars in a Savings Account Pays 7% Interest Per Year. T

1.	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» The Interest Earned on the New Principal the following year is $74.90. We will be using the concept of simple interest to solve this.