Algebra 1 : How to find simple interest
Study concepts, example questions & explanations for Algebra 1
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Example Questions
Example Question #51 : Monetary Percentage
Oscar takes out a loan from the bank for 
The monthly interest rate is the percent of the principal value of the loan 
Example Question #2711 : Algebra 1
Carly invested 
The first step of this problem is to determine the increased balance in the savings account:
Now that we know the end balance, we can determine the amount left after withdrawal, which should be 
Example Question #2712 : Algebra 1
Eric used his credit card for a car repair with a total cost of 
The monthly interest rate is the percent of the principal value of the loan 
Example Question #54 : Monetary Percentage
Jennifer took out a personal loan from the bank for 
First we want to calculate the accrued annual interest. At 
Accured interest plus the loan amount:
We can now calculate the remaining balance after payment as such:
Example Question #2713 : Algebra 1
Cody has fallen behind on his student loan payments and has not made a payment in a year. The original balance of 
To calculate next year's balance with added interest, we want to know the interest rate. We can determine this by dividing the interest already accrued by the initial loan balance:
Now that we know the annual interest rate, we can calculate the balance after one year with interest:
Once we've calculated the interest, we can add it to our starting balance to calculate the new balance with added interest:
Example Question #2714 : Algebra 1
Brenda forgot to pay her monthly credit card bill (oops!) and her balance increased to 
To find the original balance, we can use a simple interest formula, with our initial balance being 
Example Question #11 : How To Find Simple Interest
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 #51 : Monetary Percentage
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 #12 : How To Find Simple Interest
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 #62 : Monetary Percentage
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.
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