SOLUTION: to start a small business mr. tan borrowed a total of 50000 pesos from 2 banks the first bank charged him 10% annual interest and the 2nd bank 11% annual interest if the total inte
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Question 1132368: to start a small business mr. tan borrowed a total of 50000 pesos from 2 banks the first bank charged him 10% annual interest and the 2nd bank 11% annual interest if the total interest for a year is 5200 pesos how much did he borrow from each bank? Answer by greenestamps(13200) (Show Source):
For the classical algebraic solution, let x be the amount borrowed at 10%, so (50000-x) is the amount borrowed at 11%.
The interest on the amount at 10% is then .10(x); the interest on the amount at 11% is .11(50000-x).
Write and solve the equation that says the total interest is 5200:
For a much faster path to the answer, using simpler calculations, try this:
(1) The whole 50000 at 10% would get 5000 in interest; the whole 50000 at 11% would get 5500 in interest.
(2) The actual amount of interest, 5200, is 2/5 of the way from 5000 to 5500. (Think of it on a number line -- 5200-5000 = 200; 5500-5000 = 500; 200/500 = 2/5.)
(3) That means 2/5 of the total 50000 is borrowed at the higher rate.
ANSWER: 2/5 of 50000 = 20000 at 11%; the rest, 30000, at 10%.
