SOLUTION: A student takes out 2 loans totalling $30000 to pay for college. One loan is at 4% interest, while the other is at 6%. Interest for both loans is compounded annually. Find the amou
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-> SOLUTION: A student takes out 2 loans totalling $30000 to pay for college. One loan is at 4% interest, while the other is at 6%. Interest for both loans is compounded annually. Find the amou
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Question 26421: A student takes out 2 loans totalling $30000 to pay for college. One loan is at 4% interest, while the other is at 6%. Interest for both loans is compounded annually. Find the amount of the loan at 4% interest if the first year interest on the total loan is $1688.
This is what I have so far:
The sum of the loan is $30000
x + y = 30000
The interst is $1688
4% of x + 6% of y = 1688
(4/100)x + (6/100)y = 1688
y = 30000 - x
You can put this solution on YOUR website! Let amount loaned at 4% be "x"
Then amount loaned at 6% is "30000-x"
Interest at 4% is 4%x
Interest at 6% is 6%(30000-x)=1800-0.06x
EQUATION:
Int. + Int. = 1688 dollars
0.04x+1800-0.06x=1688
-0.02x=-112
x=5600 dollars (amount loaned at 4%)
30000-x= 24400 dollars (amount loaned at 6%)
Cheers,
Stan H.
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