1. **State the problem:** We have £1400 deposited in an account with a simple interest rate of 7% per year. 2. **Formula for simple interest:** The interest earned each year is given by the formula: $$I = P \times r \times t$$ where $P$ is the principal amount, $r$ is the annual interest rate (as a decimal), and $t$ is the time in years. 3. **Calculate the interest added each year (part a):** Given $P = 1400$, $r = 0.07$, and $t = 1$ year, $$I = 1400 \times 0.07 \times 1 = 98$$ So, £98 is added to the account each year. 4. **Calculate the total amount after two years (part b):** The total amount $A$ after $t$ years with simple interest is: $$A = P + I = P + P \times r \times t = P(1 + r \times t)$$ For $t = 2$ years: $$A = 1400 (1 + 0.07 \times 2) = 1400 (1 + 0.14) = 1400 \times 1.14 = 1596$$ **Final answers:** - a) £98 is added each year. - b) After two years, the account will have £1596.