SOLUTION: Dmitri's two student loans total $9000. One loan is at 4.5% simple interest and the other is at 5.5% simple interest. At the end of 1 year, Dmitri owes $447 in interest. What is th
Algebra ->
Customizable Word Problem Solvers
-> Finance
-> SOLUTION: Dmitri's two student loans total $9000. One loan is at 4.5% simple interest and the other is at 5.5% simple interest. At the end of 1 year, Dmitri owes $447 in interest. What is th
Log On
Question 944936: Dmitri's two student loans total $9000. One loan is at 4.5% simple interest and the other is at 5.5% simple interest. At the end of 1 year, Dmitri owes $447 in interest. What is the amount of each loan.
Any help or feedback would be greatly appreciated as I don't know how to solve this problem. Answer by macston(5194) (Show Source):
You can put this solution on YOUR website! Let L=loan amount at lower rate:H=loan amount at higher rate
L+H=$9000;L=$9000-H
0.045L+0.055H=$447 Substitute for L and solve for H
0.045($9000-H)+.055H=$447
0.045($9000)-0.045H+.055H=$447
$405+.01H=$447 Subtract $405 from each side
0.01H=$42 Multiply each side by 100
H=$4200 ANSWER 1: The higher rate loan was for $4200
L=$9000-$4200=$4800 ANSWER 2: The lower rate loan was for $4800
CHECK
0.045($4800)+0.055($4200)=$447
$216+$231=$447
$447=$447
