SOLUTION: Hollis is paying off two student loans. One loan charges 7% interest per year. The other loan charges 9% interest per year. He owes $1500 more on the 7% loan than he does on the
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Question 203359This question is from textbook
: Hollis is paying off two student loans. One loan charges 7% interest per year. The other loan charges 9% interest per year. He owes $1500 more on the 7% loan than he does on the other. Last year he paid a total of $617 interest. How much does he owe on each loan? This question is from textbook
You can put this solution on YOUR website! Hollis is paying off two student loans. One loan charges 7% interest per year. The other loan charges 9% interest per year. He owes $1500 more on the 7% loan than he does on the other. Last year he paid a total of $617 interest. How much does he owe on each loan?
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Let the two loan amounts be "x" and "y".
Equations:
Interest: 0.07x + 0.09y = 617
Money owed: x - y = 1500
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Rearrange:
7x + 9y = 61700
7x - 7y = 7*1500
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Subtract the 2nd from the 1st to solve for "y":
16y = 51200
y=$3200 (Amt. owed on 9% loan)
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x = y + 1500 = $4700 (Amt. owed on 7% loan)
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Cheers,
Stan H.
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