SOLUTION: Michelle borrows a total of $6000 in student loans from two lenders. One charges 3.2% simple interest and the other charges 6.5% simple interest. She is not required to pay off the

Question 1185519: Michelle borrows a total of $6000 in student loans from two lenders. One charges 3.2% simple interest and the other charges 6.5% simple interest. She is not required to pay off the principal or interest for 2 years. However, at the end of 2 years, she will owe a total of $483 for the interest from both loans. How much did she borrow from each lender?
Answer by ikleyn(52800) (Show Source): You can put this solution on YOUR website!
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Michelle borrows a total of $6000 in student loans from two lenders.
One charges 3.2% simple interest and the other charges 6.5% simple interest.
She is not required to pay off the principal or interest for 2 years.
However, at the end of 2 years, she will owe a total of $483 for the interest from both loans.
How much did she borrow from each lender?
~~~~~~~~~~~~

x = the amount loaned at 6.5%.

(6000-x) = the amount loaned at 3.2%.


Now write the total simple interest equation for 2 years


    2*0.065x + 2*0.032*(6000-x) = 483.


From the equation,


    x =  = one click in my Excel spreadsheet = 1500.


ANSWER.  $1500 loaned at 6.5%, and the rest,  6000-1500 = 4500  dollars loaned at 3.2%.


CHECK.   2*0.065*1500 + 2*0.032*4500 = one click in my Excel spreadsheet = 483  dollars, correct.

Solved.

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