Algebra 1 : Algebra 1
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Example Questions
Example Question #2721 : Algebra 1
Trevor wants to buy a car that costs $4,000. He spends $1,000 of his own money, and borrows the rest from his parents at 6% interest. What will be the total cost of the car when he finishes paying back the loan?
Trevor needs to pay 6% interest on $3,000 that he is borrowing which amounts to an additional $180, bringing the total cost to $4,180.
Example Question #18 : How To Find Simple Interest
Tanya opened a credit card with 16% yearly interest to purchase something on sale at a large department store for 
When calculating interest on an item you need to multiply the amount of the item by the interest in decimal form. 16% is equivalent to .16.
You can also solve this problem in one step by multiplying the original price of the item by 1.16. This number means that you are paying for 100% of the item plus the 16% interest. 
Example Question #61 : Monetary Percentage
Find the simple interest earned if you deposit $2000 into a bank at an annual rate of 5% for 3 years.
To find the simple interest, we use the formula
or
where the principal is the initial amount we desposit, the rate is the percentage of interest accruing, and the time is the number of years.
We know
So we substitute, and we get
Therefore, the simple interested earned is $300.
Example Question #12 : How To Find Simple Interest
You deposit $400 at the bank that accrues an interest of 5% every year. How much interest will you have earned in 10 years?
To find the simple interest accrued, we will use the formula
or
We know the following
We can substitute into the formula. We get
Therefore, the amount of interest earned is $200.
Example Question #21 : How To Find Simple Interest
You deposit $2000 in a bank that earns 12% interest every year. How much interest will accrue in 5 years?
To find the interest earned, we use the following formula
where P is the principal or amount deposited, R is the rate of interest earned, and T is the time in years. Using this formula, we can substitute. We get
Therefore, the amount of interested earned after 5 years is $1200.
Example Question #22 : How To Find Simple Interest
You deposit $1500 into a savings account. The account earns 7% in interest annualy. How much simple interest will you earn in 6 years?
To find simple interest, we use the following formula:
where
Given what we know
we can substitute into the formula. We get
Therefore, you earned a total of 
Example Question #23 : How To Find Simple Interest
You deposit $400 into a savings account. The account earns 3% interest per year. How much simple interest will you earn after 4 years?
To find simple interest, we use the following formula:
where
Given what we know
we can substitute into the formula. We get
Therefore, you earned a total of 
Example Question #61 : Monetary Percentage
You invest $550 in a savings account that accrues interest at a rate of 6% annually. How much interest will you earn after 3 years?
To find simple interest, we use the following formula:
where
Given what we know
we can substitute into the formula. We get
Therefore, you earned a total of 
Example Question #62 : Monetary Percentage
You deposit $700 in a savings account at a bank. It accrues 4% interest annually. How much simple interest will you earn after 2.5 years?
To find simple interest, we use the following formula:
where
Given what we know
we can substitute into the formula. We get
Therefore, you earned a total of 
Example Question #24 : How To Find Simple Interest
Joey received a savings bond that pays out 4% interest each year. The face value of the bond is $500. How much will Joey receive after holding the bond for one year?
Convert 4% into a decimal...
4% = 0.04
...and multiply by the face value of the bond. If 
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