Lesson Simple interest percentage problems
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<H2>Simple interest percentage problems</H2> <H3>Problem 1</H3>Jane invests $2,000 in a saving account. The account pays an annual simple interest rate of 5.75% at the end of each year. How much will be in her account at the end of 10 years? <B>Solution</B> <pre> A general formula for a simple interest account earning r percents per year is FV = A*(1 + r*t) where A is the original deposit, FV is the future value, r is the annual rate expressed as a decimal, t is the time (in years). In our case, A = 2000 dollars; r = 0.0575; t = 10 years. The future value of the account after 10 years is 2000 + 0.0575*2000*10 = 3150. <U>ANSWER</U> </pre> <H3>Problem 2</H3>Nate borrows $300 to buy a smartphone. He is charged 5% simple interest per year. How much interest, in dollars, will Nate pay after 2 years? <B>Solution</B> <pre> The interest after 2 years will be 0.05*300*2 = 30 dollars. <U>ANSWER</U> </pre> <H3>Problem 3</H3>Money is borrowed at 11% simple interest. After one year, $1292.04 pays off the loan. How much was originally borrowed? <B>Solution</B> <pre> Let x be the originally borrowed amount. Then you have this equation for the amount after 1 year x + 0.11x = 1292.04 dollars, or x*(1 + 0.11) = 1292.04 dollars 1.11x = 1292.04 x = {{{1292.04/1.11}}} = 1164. <U>ANSWER</U>. 1164 dollars. </pre> My other lessons on percentage in this site are - <A HREF=http://www.algebra.com/algebra/homework/percentage/lessons/Percentage-problems.lesson>Percentage problems</A> - <A HREF=http://www.algebra.com/algebra/homework/Percentage-and-ratio-word-problems/Percentage-word-problems-%28Type-1-problems-Finding-the-Part%29.lesson>Percentage word problems (Type 1 problems, Finding the Part)</A> - <A HREF=http://www.algebra.com/algebra/homework/Percentage-and-ratio-word-problems/Percentage-word-problems-%28Type-2-problems-Finding-the-Rate%29.lesson>Percentage word problems (Type 2 problems, Finding the Rate)</A> - <A HREF=http://www.algebra.com/algebra/homework/Percentage-and-ratio-word-problems/Percentage-word-problems-%28Type-3-problems-Finding-the-Base%29.lesson>Percentage word problems (Type 3 problems, Finding the Base)</A> - <A HREF=https://www.algebra.com/algebra/homework/Percentage-and-ratio-word-problems/Simple-percentage-problems.lesson>Simple percentage problems</A> - <A HREF=http://www.algebra.com/algebra/homework/Percentage-and-ratio-word-problems/More-complicated-percentage-problems.lesson>More complicated percentage problems</A> - <A HREF=https://www.algebra.com/algebra/homework/Percentage-and-ratio-word-problems/Advanced-problems-on-percentage.lesson>Advanced problems on percentage</A> - <A HREF=https://www.algebra.com/algebra/homework/percentage/lessons/Percentage-problems-on-chains-of-discounts.lesson>Percentage problems on chains of discounts</A> - <A HREF=http://www.algebra.com/algebra/homework/Percentage-and-ratio-word-problems/Problems-on-percentage-that-lead-to-unexpected-results.lesson>Problems on percentage that lead to unexpected results</A> - <A HREF=https://www.algebra.com/algebra/homework/percentage/lessons/Compound-interest-percentage-problem.lesson>Compounded interest percentage problems</A> - <A HREF=https://www.algebra.com/algebra/homework/Percentage-and-ratio-word-problems/Buying-price-Selling-price-and-Profit-percentage-problems.lesson>Buying price, selling price and profit percentage problems</A> - <A HREF=https://www.algebra.com/algebra/homework/Percentage-and-ratio-word-problems/Business-related-entertainment-problem-on-percentage.lesson>Business-related entertainment problem on percentage</A> - <A HREF=http://www.algebra.com/algebra/homework/Percentage-and-ratio-word-problems/OVERVIEW-of-lessons-on-percentage-problems.lesson>OVERVIEW of lessons on percentage problems</A>
