How to find simple interest - Algebra
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A bank account begins at $175, and it earns 15% interest. The accound holder then takes 76% of the available balance out. How much money is left in the bank account?
A bank account begins at $175, and it earns 15% interest. The accound holder then takes 76% of the available balance out. How much money is left in the bank account?
The account begins at $175 and then earns 15% interest:
If the account owner takes out 76% of the available balance, that means that 24% off the account will be remaining:
$48.30 remains
The account begins at $175 and then earns 15% interest:
If the account owner takes out 76% of the available balance, that means that 24% off the account will be remaining:
$48.30 remains
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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 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.
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.
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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?
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 
is the interest paid after one year, the equation would look like this:
Convert 4% into a decimal...
4% = 0.04
...and multiply by the face value of the bond. If
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Exactly one year ago, John placed $8,000 into an investment account. Over the past year, the investments in his account have increased in value by 12%. How much money does he have now?
Exactly one year ago, John placed $8,000 into an investment account. Over the past year, the investments in his account have increased in value by 12%. How much money does he have now?
John started out with $8,000 and increased it by 12% after a year. This indicates that by the end of the year, he has 112% of $8,000 (The original $8,000 plus the 12% return from his investments). Convert 112% into its decimal equivalent of 1.12 and multiply it by $8,000 to get John's current savings amount:
John started out with $8,000 and increased it by 12% after a year. This indicates that by the end of the year, he has 112% of $8,000 (The original $8,000 plus the 12% return from his investments). Convert 112% into its decimal equivalent of 1.12 and multiply it by $8,000 to get John's current savings amount:
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You borrow $800 from a friend and your friend charges you a simple interest of 8% at an annual rate. Assume that you don't pay any of it back, how much interest will you owe in three years?
You borrow $800 from a friend and your friend charges you a simple interest of 8% at an annual rate. Assume that you don't pay any of it back, how much interest will you owe in three years?
The formula for simple interest is
where 
is the amount that's loaned to you, 
is the annual interest rate, and 
is the time (in years) interest accumulates. In this problem,
and
Plug these values in:
So in three years, you will owe an interest of $192.
The formula for simple interest is
where
and
Plug these values in:
So in three years, you will owe an interest of $192.
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You take a loan of $5,000 from your bank to buy a car. Your bank charges you interest at an annual rate of 3.5%. How much interest will you accrue in three years, assuming that you haven't paid any of the principal back? (Use simple interest, not compound.)
You take a loan of $5,000 from your bank to buy a car. Your bank charges you interest at an annual rate of 3.5%. How much interest will you accrue in three years, assuming that you haven't paid any of the principal back? (Use simple interest, not compound.)
The formula in calculating interest is
,
where 
is the principal, 
is the annual interest rate in decimal form, and 
is number of years the principal accrues interest. In this problem, 
, 
, and 
.
To find the interest, plug these values into the equation:
Therefore the accrued interest is $525.
The formula in calculating interest is
where
To find the interest, plug these values into the equation:
Therefore the accrued interest is $525.
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Jennifer has invested her money in an account that yields 5% interest per year. If she invested $12,000, how much interest will she yield?
Jennifer has invested her money in an account that yields 5% interest per year. If she invested $12,000, how much interest will she yield?
To solve this, multiply 12,000 by the decimal equivalent of 5% (.05). This gives a total interest of $600.
To solve this, multiply 12,000 by the decimal equivalent of 5% (.05). This gives a total interest of $600.
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If a woman invests $2000 into a fund that has 5% annual interest, how much many can she expect to make from her investment, after 2 years?
If a woman invests $2000 into a fund that has 5% annual interest, how much many can she expect to make from her investment, after 2 years?
To calculate the amount of interest she earned, we use the formula:
, where 
is the principal (the initial amount invested) 
is the interest rate, and 
is the amount of time, in years, passed.
Plug the given values into the above formula:
Remember, when calculating interest, percents needed to be converted to decimals.
To calculate the amount of interest she earned, we use the formula:
Plug the given values into the above formula:
Remember, when calculating interest, percents needed to be converted to decimals.
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Sal invests $2000 in a fund and after a year, earns $140 of interest. What is the interest rate for the fund Sal invested in?
Sal invests $2000 in a fund and after a year, earns $140 of interest. What is the interest rate for the fund Sal invested in?
To calculate the percent interest of Sal's account, we arrange the simple interest formula:
Solve for the interest rate, 
Plug in the appropriate values
Simplify.
To calculate the percent interest of Sal's account, we arrange the simple interest formula:
Solve for the interest rate,
Plug in the appropriate values
Simplify.
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Steve wants to earn $300 from the interest on his investments. If he invests $2000 in a fund with 5% interest per year, how long will Steve have to wait for the interest to be worth $300?
Steve wants to earn $300 from the interest on his investments. If he invests $2000 in a fund with 5% interest per year, how long will Steve have to wait for the interest to be worth $300?
To solve this problem, we use the equation for simple interest:
Since we know how much Steve has invested, how much interest he is looking to make, and his interest, we are solving for 
:
Plug in the appropriate values and solve:
To solve this problem, we use the equation for simple interest:
Since we know how much Steve has invested, how much interest he is looking to make, and his interest, we are solving for
Plug in the appropriate values and solve:
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If you deposit 
into a savings account that yields 5% annual interest, how much interest will you earn in 
years?
If you deposit
When finding simple interest, we use the following formula:
The principal (P) equals the amount we deposit or invest. In this case,
The rate (R) is the percentage rate at which the principal increases or decreases. In this case,
because we must convert 5% into decimal form.
The time (T) equals the number of years the money is accruing interest. In the case,
So, according to the formula above
Therefore, the total interest earned is $375.
When finding simple interest, we use the following formula:
The principal (P) equals the amount we deposit or invest. In this case,
The rate (R) is the percentage rate at which the principal increases or decreases. In this case,
because we must convert 5% into decimal form.
The time (T) equals the number of years the money is accruing interest. In the case,
So, according to the formula above
Therefore, the total interest earned is $375.
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Tanya opened a credit card with 16% yearly interest to purchase something on sale at a large department store for 
. Unfortunately, she forgot to pay her bill all year. How much will she end up paying for the item if she pays it off now?
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.
. The second step is to add the interest to the original amount of the item 
, which would give you an answer of 
.
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. 
.
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.
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Oscar spent 
on his credit card for a Valentine's Day on the town with his better half. If the monthly billing statement totalled 
, what is the monthly interest on Oscar's card?
Oscar spent
To find the percent interest, we want to determine the cash value,of the interest and divide that by the card balance before interest was accrued:
To find the percent interest, we want to determine the cash value,of the interest and divide that by the card balance before interest was accrued:
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Oscar takes out a loan from the bank for 
. If the end of the month billing statement has a total balance of 
, what is the monthly interest rate for the loan?
Oscar takes out a loan from the bank for
The monthly interest rate is the percent of the principal value of the loan 
added on to the total balance each month. We can determine the interest rate by dividing the interest accrued by the initial loan amount:
The monthly interest rate is the percent of the principal value of the loan
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Carly invested 
in a savings account, which, within a years' time increased by roughly 
. If at the end of the year, Carly withdrew 
of the total balance in the savings account, what is the remaining balance?
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 
of the total balance with interest:
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
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Eric used his credit card for a car repair with a total cost of 
. Eric's credit card billing statement the following month had a balanced of 
. What was the percent interest for that month?
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 
added on to the total balance each month. We can determine the interest rate by dividing the interest accrued by the initial loan amount:
The monthly interest rate is the percent of the principal value of the loan
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Jennifer took out a personal loan from the bank for 
with an annual interest rate of 
. After one year of nonpayment, Jennifer pays off 
of the balance, including accrued interest. What is the balance of the loan after the payment is made?
Jennifer took out a personal loan from the bank for
First we want to calculate the accrued annual interest. At 
annual interest, we can find the cash value of the interest as such:
Accured interest plus the loan amount:
We can now calculate the remaining balance after payment as such:
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:
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Cody has fallen behind on his student loan payments and has not made a payment in a year. The original balance of 
has accrued interest and increased to 
. If Cody does not make any payments this year, what will be the year-end balance of the loan?
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:
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:
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Brenda forgot to pay her monthly credit card bill (oops!) and her balance increased to 
. If the monthly interest rate on the card is 
, what was Brenda's initial balance?
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 
. Then we just need to solve for 
.
To find the original balance, we can use a simple interest formula, with our initial balance being
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Find the simple interest earned if you deposit $2000 into a bank at an annual rate of 5% for 3 years.
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.
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.
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