How to find Simple Interest in Algebra

In Algebra tutoring ,Interest is a fee paid on borrowed assets. It is the price paid for the use of borrowed money, or, money earned by deposited funds. Assets that are sometimes lent with interest include money, shares, consumer goods through hire purchase, major assets such as aircraft, and even entire factories in finance lease arrangements. The interest is calculated upon the value of the assets in the same manner as upon money. Interest can be thought of as "rent of money". When money is deposited in a bank, interest is typically paid to the depositor as a percentage( how to find percentage) of the amount deposited; when money is borrowed, interest is typically paid to the lender as a percentage of the amount owed. The percentage of the principal that is paid as a fee over a certain period of time (typically one month or year), is called the interest rate.Let's see an example from algebra 1 word problems



Question:-

A city government built a $60 million sports arena.Some of the money was raised by selling bonds that pay simple interest at a rate of 11% annually.The remaining amount was obtained by borrowing money from an insurance company at a simple interest rate of 10% .How much was financed through the insurance company if the annual interest is $6.19 million?


Answer:-

Let $x was financed through the insurance company.

Then $(60-x) was raised through selling bonds.

Interest on $(60-x) for 1 year at 11% is (60-x).11/100

And interest on $x for 1 year at 10% is x.10/100

By the problem

[11(60-x)/100] + [10x/100] = 6.19

multiplying both sides by 100 , we get


11(60-x)+10x = 619

660-11x+10x = 619

660 - x = 619

x = 41

So,$41 was financed through the insurance company.