Question 1193414: After four years in college, Josie owes $65,800 in student loans. The interest rate on the federal loans is 4.5% and the rate on the private bank loans is 2%. The total interest she owes for one year was $2,828.50. What is the amount of each loan?
federal loans-
private bank loans-
Answer by ankor@dixie-net.com(22740)   (Show Source):
You can put this solution on YOUR website! After four years in college, Josie owes $65,800 in student loans.
The interest rate on the federal loans is 4.5% and the rate on the private bank loans is 2%.
The total interest she owes for one year was $2,828.50.
What is the amount of each loan?
:
let x = amt owed at the 4.5% rate
The total owed for is 65800, therefore:
(65800-x) = amt owed at the 2% rate
:
.045x + .02(65800-x) = 2828.50
distribute the .02
.045x + 1316 - .02x = 2828.5
.045x - .02x = 2828.5 - 1316
.025x = 1512.5
x = 1512.5/.025
x = $60,500 owed at 4.5%
then
65800-60500 = $5300 owed at the 2% rate
:
:
Check this, find the actual interest from each
.045*60500 = 2722.50
.02 * 5300 = 106.0
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total int: 2828.50
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