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 :

$\tt \: \color{hotpink}simple \: interest \color{plum}= \frac{principal \times rate \times time}{100}$

In this case :

Principal = $500

Rate = 1.3%

Time = 4 years

Which means :

The simple interest she will earn in 4 years :

$= \tt \frac{500 \times 1.3 \times 4}{100}$

$= \tt \frac{2600}{100}$

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

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 :

$\tt \: \color{hotpink}percentage \: of \: change\color{plum} = \frac{change}{original \: price} \times 100$

Which means :

Percentage of change in her savings account :

$=\tt \frac{26}{500} \times 100$

$=\tt \frac{26 \times 100}{500}$

$= \tt\frac{2600}{500}$

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

○=> Therefore :

▪︎Simple interest after 4 years = $26

▪︎Money she will earn after 4 years = $526

▪︎Percentage of change in her savings account = 5.2%