To complete the table, we calculate the interest and balances year by year. Since the account earns simple interest, the interest is calculated based on the initial principal ($7000), not on the accumulated balance. The formula for simple interest is:

$\text{Interest} = \text{Principal} \times \text{Rate} \times \text{Time}$

Here, the interest earned each year is:

$\text{Interest per year} = 7000 \times 0.07 = 490 \, \text{dollars.}$

Now we can complete the table:

Year-by-Year Calculations:

1. Year 1:

   • Starting Balance: $7000
   • Interest: $490
   • Ending Balance: $7490

2. Year 2:

   • Starting Balance: $7490
   • Interest: $490
   • Ending Balance: $7490 + 490 = 7980$

3. Year 3:

   • Starting Balance: $7980
   • Interest: $490
   • Ending Balance: $7980 + 490 = 8470$

4. Year 4:

   • Starting Balance: $8470
   • Interest: $490
   • Ending Balance: $8470 + 490 = 8960$

5. Year 5:

   • Starting Balance: $8960
   • Interest: $490
   • Ending Balance: $8960 + 490 = 9450$

Completed Table:

Year	Starting Balance	Interest	Ending Balance
1	$7000	$490	$7490
2	$7490	$490	$7980
3	$7980	$490	$8470
4	$8470	$490	$8960
5	$8960	$490	$9450

Would you like a further explanation of simple interest, or do you have any questions? 😊

Expanding Questions:

1. How would the table differ if compound interest were used instead of simple interest?
2. What is the total interest earned over the 5 years?
3. What would the ending balance be after 10 years with the same rate of simple interest?
4. How does the rate of interest affect the ending balance in this example?
5. Can we derive a general formula for the ending balance after $n$ years under simple interest?

Tip:

Simple interest grows linearly with time, making it straightforward to predict future balances!