SOLUTION: Chelsea took out three loans for a total of $79,000 to start an organic orchard. Her business equipment loan was at an interest rate of 11%, the small business loan was at an inte
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Question 902422: Chelsea took out three loans for a total of $79,000 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 5%, and her home equity loan was at an interest rate of 4.5%. The total simple interest due on the loans in one year was $4590. The annual simple interest on the home equity loan was $260 more than the interest on the business equipment loan. How much did she borrow from each source? Answer by richwmiller(17219) (Show Source):
You can put this solution on YOUR website! b+s+h=79000,
0.11*b+0.045*s+0.05*h=4590,
0.05*h-0.11*b=260
b = 13276.30, s = 31315.80,h = 34407.90
