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Question 1112792: Chelea took out three loans for a total of $76,000 to start an organic orchard.
Her business equipment loan was at an interest rate of 11%, the small business loan was at an interest rate of 4%, and her home equity loan was at an interest rate of 5.5%. The total simple interest due on the loans in one year was $4465.
The annual simple interest due on the home equity was $825 more than the interest on the business equipment loan. How much did she borrow from each source?
(Im confused over the 5.5 because when I work out the problem I get a fraction)
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! Chelsea took out three loans for a total of $76,000 to start an organic orchard.
Her business equipment loan was at an interest rate of 11%, the small business loan was at an interest rate of 4%, and her home equity loan was at an interest rate of 5.5%. The total simple interest due on the loans in one year was $4465.
The annual simple interest due on the home equity was $825 more than the interest on the business equipment loan. How much did she borrow from each source?
(Im confused over the 5.5 because when I work out the problem I get a fraction)
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b + s + h = 76000 dollars
0.11b + 0.04s + 0.055h = 4465 dollars
-0.11b + 0s + 0.055h = 825 dollars
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b + s + h = 76000
11b+4s+5.5h = 446500
-11b + 0 + 5.5h = 82500
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Use any method you know to solve the system to get:
b = 12000
s = 25000
h = 39000
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Cheers,
Stan H.
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