Chapter 1.4, Problem 7G

Account 1: You deposit $1,000 into an account that pays 5% simple interest on that $1,000 each year.

Account 2: You deposit $1,000 into an account that pays 5% of the account balance at the beginning of the current year in interest each year.

This is the calculation used to find the amount after the first year in either account:

Amount	=	$1,000	$+$	0.05($1,000)
		Pervious Amount	Plus	5% of Pervious amount

Can you think of a way to simplify the calculation so that all you have to do is one multiplication?