Adding an image is a common requirement for most websites. It is quite simple and here are the basics:
A. Adding the Image and Inserting Into a Basic Page
The image should now be shown in the page.
B. Inserting An External Image
You can alternatively, insert an image hosted on another site (if that site lets you link to images). A good example is Wiki Commons where you will find all kinds of images that you can put in your pages without purchase. Another option might be to keep all your images on an image hosting site such as Picassa or Flickr or even Amazon S3

The image should now be shown in the page.
Click here for a short video clip that shows both methods in action.