Lesson 2-1 Avoiding Empty Pockets 129 Did You Get It 2. Suppose that one savings account is opened with a $500 balance and earns 4% simple interest. To find how the value grows each year, what would you add to the previous year's amount? 3. Suppose that another savings account is opened with a $700 balance and earns 4% compound interest. To find how the value grows each year, what would you multiply the previous year's balance by? 2-1 Class 1. Here's a key observation about the repeated multiplication that occurs when finding the value of Account 2 in the group activity: Repeated multiplication can be expressed more concisely using an Let's continue working with the two accounts from the Group portion of this lesson. With an initial investment of $1,000 and 5% compound interest, the value of that account after 7 years would be given by 1,000 (1.05)7 2. Without using a calculator, write that expression without any exponents. Don't perform the calculation: Just write out what it would look like. hes choned only our result to Question [1. Describe while you did terms of 3. What is the value of the account after 7 years? of diwong Isinshoepie biris insnil woods bamsel ov voy idw sell 18 4. In Account 1, where the interest is simple, the account value goes up by 0.05($1,000) = $50 each year. Write a calcula- tion that would find the value after 7 years, then find the value