Question

birute deposite $500 In a savings account with a simple interest rate of 1.3% . how could you use this information to find the interest she would earn in 4 years and determine the percent change in her saving account. ​

Answer 1

Money Birute deposited in a savings account = $500

Rate of simple interest per annum = 1.3%

▪︎We need to find the interest she will earn in 4 years.

We know that :

`\tt \: \color{hotpink}simple \: interest \color{plum}= (principal * rate * time)/(100)`

In this case :

Principal = $500

Rate = 1.3%

Time = 4 years

Which means :

The simple interest she will earn in 4 years :

`= \tt (500 * 1.3 * 4)/(100)`

`= \tt (2600)/(100)`

`\color{plum} = \tt\bold{\$26}`

Thus, the simple interest she will earn in 4 years = $26

Amount = Principal + Interest

Amount she will gain after 4 years :

`=\tt 500 + 26`

`\color{plum} = \tt\bold{\$526}`

Thus, the amount she will gain after 4 years = $526

Amount change in her account = 526 - 500 = 26

We know that :

`\tt \: \color{hotpink}percentage \: of \: change\color{plum} = (change)/(original \: price) * 100`

Which means :

Percentage of change in her savings account :

`=\tt (26)/(500) * 100`

`=\tt (26 * 100)/(500)`

`= \tt(2600)/(500)`

`\color{plum} = \bold{\tt\bold{5.2\%}}`

○=> Therefore :

▪︎Simple interest after 4 years = $26

▪︎Money she will earn after 4 years = $526

▪︎Percentage of change in her savings account = 5.2%