SOLUTION: Edgar borrowed a total of $10,000 from three sources: the bank, his mom, and a close friend. After one year, he paid a total of $624 in simple interest toward the three loans. The

Algebra ->  Finance -> SOLUTION: Edgar borrowed a total of $10,000 from three sources: the bank, his mom, and a close friend. After one year, he paid a total of $624 in simple interest toward the three loans. The       Log On


   

Question 1180208: Edgar borrowed a total of $10,000 from three sources: the bank, his mom, and a close friend. After one year, he paid a total of $624 in simple interest toward the three loans. The bank charged an interest rate of 7% per year, his mom charged 5%, and the friend charged 6%. The amount he borrowed from his mom exceeded the amount he borrowed from his friend by $200. What amount did Edgar borrow from the bank?
a. $2,400
b. $3,600
c. $5,000
d. $5,400
Answer by mananth(16946) About Me  (Show Source):
You can put this solution on YOUR website!

Bank 7% 10000-(2x+200) = 9800-2x
Mom 5% x+200
Friend 6% x
Total 624 10000


(9800-2x)*7% +(x+200)*5% +6%x =624
multiply by 100
(9800 -2x )*7+ 5*(x+200) +6x = 62400
68600 -14x +5x +1000 +6x =62400
-3x = -7200
x= 2400
mom $2600
Bank ----$ 5000