document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1141590>Question 1141590</A>: <I><SPAN STYLE=\"word-break: break-all;\"> A realtor borrowed $80,000 to develop some property. He was able to borrow part of the money at 3.5% interest and the rest at 5%. The annual interest on the two loans amounts to $3250. How much was borrowed at each rate? (Simple interest formula: I = P rt.) </SPAN>\n" );
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document.write( "(1) Using the standard algebraic approach....<br><BR>\n" );
document.write( "Interest on amount x at 3.5% = (.035)(x)<br><BR>\n" );
document.write( "Interest on amount (80000-x) at 5% = (.05)(80000-x)<br><BR>\n" );
document.write( "Write and solve the equation that says the total interest is $3250.<br><BR>\n" );
document.write( "----------------------------------------------<br><BR>\n" );
document.write( "(2) A different method (much faster and easier, if you understand it)<br><BR>\n" );
document.write( "$80000 at 3.5% = $2800<br><BR>\n" );
document.write( "$80000 at 5% = $4000<br><BR>\n" );
document.write( "Where the actual total interest of $3250 lies between $2800 and $4000 determines the ratio in which the loan is split between the two rates.<br><BR>\n" );
document.write( "3250-2800 = 450; 4000-2800 = 1200; 450/1200 = 3/8<br><BR>\n" );
document.write( "This means 3/8 of the $80,000 loan ($30,000) is at the higher rate.<br><BR>\n" );
document.write( "ANSWER: $30,000 at 5%; $50,000 at 3.5%<br><BR>\n" );
document.write( "CHECK: .05(30000) + .035(50000) = 1500+1750 = 3250 </SPAN>\n" );
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