SOLUTION: laura borrowed a total of 22,000 from two different banks to start a business. one bank charged the equivalent of 6% simple interest, and the other charged 7.5% interest. if the to

Question 1122355: laura borrowed a total of 22,000 from two different banks to start a business. one bank charged the equivalent of 6% simple interest, and the other charged 7.5% interest. if the total interest after 3 years was 4,095, determine the amount borrowed from each bank
Answer by ikleyn(52906) (Show Source): You can put this solution on YOUR website!
.

The condition talks about simple interest.


So, the total simple interest after 1 year is   = 1365 dollars.


Then you have these two equations


    x +      y = 22000   dollars    (equation 1)   ("a total is 22,000 from two different banks")

0.06x + 0.075y =  1365   dollars    (equation 2)   (the total interest after one year)



From equation (1), express x = 22000-y  and then substitute it into equation (2), replacing x.
You will get a single equation for unknown y:



0.06*(22000-y) + 0.075y = 1365,

0.075y - 0.06y = 1365 - 0.06*22000  ====>  y =  = 3000 dollars.


Answer.  $3000 were bprrowed at 7.5%;  the rest  #22000 - $3000 = $19000 were borrowed at 6%.


Check.  0.06*19000 + 0.075*3000 = 1365 dollars.  ! Correct !

Solved.

-----------------

It is a typical and standard problem on investment.

To see many other similar solved problems on investment, look into the lesson
- Using systems of equations to solve problems on investment
in this site.

You will find there different approaches (using one equation or a system of two equations in two unknowns), as well as
different methods of solution to the equations (Substitution, Elimination).

Also, you have this free of charge online textbook in ALGEBRA-I in this site
- ALGEBRA-I - YOUR ONLINE TEXTBOOK.

The referred lesson is the part of this online textbook under the topic "Systems of two linear equations in two unknowns".

Save the link to this online textbook together with its description

Free of charge online textbook in ALGEBRA-I
https://www.algebra.com/algebra/homework/quadratic/lessons/ALGEBRA-I-YOUR-ONLINE-TEXTBOOK.lesson

to your archive and use it when it is needed.

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