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 :
In this case :
Principal = $500
Rate = 1.3%
Time = 4 years
Which means :
The simple interest she will earn in 4 years :
Thus, the simple interest she will earn in 4 years = $26
Amount = Principal + Interest
Amount she will gain after 4 years :
Thus, the amount she will gain after 4 years = $526
Amount change in her account = 526 - 500 = 26
We know that :
Which means :
Percentage of change in her savings account :
▪︎Simple interest after 4 years = $26
▪︎Money she will earn after 4 years = $526
▪︎Percentage of change in her savings account = 5.2%