SOLUTION: Suppose a total of $5000 is borrowed from two different loans. One loan charges 10% simple interest, and the other charges 8% simple interest. How much was borrowed at each rate if
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Question 950519: Suppose a total of $5000 is borrowed from two different loans. One loan charges 10% simple interest, and the other charges 8% simple interest. How much was borrowed at each rate if $424 in interest is charged at the end of 1 year? Answer by macston(5194) (Show Source):
You can put this solution on YOUR website! T=amount at 105; E=amount at 8%
E+T=$5000
T=$5000-E
0.08E+0.10T=$424 Substtute for T
0.08E+0.10($5000-E)=$424
0.08E+$500-0.10E=$424 Subtract $424 from each side.
-0.02E+$76=0 Add 0.02E to each side.
$76=0.02E Divide each side by 0.02
$3800=E ANSWER 1:$3800 was invested at 8%.
T=$5000-$3800=$1200 ANSWER 2: $1200 was invested at 10%.
CHECK:
0.08E+0.10T=$424
0.08($3800)+0.10($1200)=$424
$304+$120=$424
$424=$424
