SOLUTION: A student takes out a loan for a limited amount of money at 5% interest and then must pay 7% for any additional money. If the student borrows $2000 more at 7% than at 5%, then the
Algebra ->
Customizable Word Problem Solvers
-> Finance
-> SOLUTION: A student takes out a loan for a limited amount of money at 5% interest and then must pay 7% for any additional money. If the student borrows $2000 more at 7% than at 5%, then the
Log On
Question 767971: A student takes out a loan for a limited amount of money at 5% interest and then must pay 7% for any additional money. If the student borrows $2000 more at 7% than at 5%, then the total interest for one year is $440. How much does the student borrow at each rate?
I look at the problem and got confused if I should use the formula I=PRT for interest but I believe it is just a equation because there is not a time for payoff. Thanks for your help. I have not done word problems for over 20 years.
Larry Answer by ankor@dixie-net.com(22740) (Show Source):
You can put this solution on YOUR website! A student takes out a loan for a limited amount of money at 5% interest and then must pay 7% for any additional money.
If the student borrows $2000 more at 7% than at 5%, then the total interest for one year is $440.
How much does the student borrow at each rate?
:
let x = original amt borrowed at 5%
:
.05x + .07(2000) = 440
.05x + 140 = 440
.05x = 440 - 140
.05x = 300
x = 300/.05
x = $6000
:
:
you can check this .05(6000) + .07(2000) =
