Question 85800
A customer purchased a car and financed $16,000.  The customer borrowed part of the money from a bank charging 10% annual interest and the rest from a credit union at 8% annual interest.  If the total interest for the year was $1390 how much borrowed from the bank and how much was borrowed from the credit uninon?
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Let amount invested at 10% be "x"; Interest on that is 0.10x dollars
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Amount invested at 8% is "16000-x"; Interest on that is 0.08(16000-x)=1280-0.08x dollars
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EQUATION:
interest + interest = $1390
0.10x + 1280 - 0.08x = 1390
0.02x = 110
x= $5500.00 (amt invested at 10%)
16000-x = 16000-5500 = $10500 (amt invested at 8%)
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Cheers,
Stan H.