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
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-> 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
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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! .
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.
