Question 85800
Let x = the amount borrowed from the bank at 10% interest.
Then $16,000-x = the amount borrowed from the credit union at 8% interest.
You can write the following equation, after changing the percentages to their eqivalent decimal amounts, for the total amount of interest paid:
x(0.1) + ($16000-x)(0.08) = $1,390 Simplify and solve for x.
0.1x + $1,280 - 0.08x = $1,390 Combine like-terms.
0.02x + $1.280 = $1,390 Subtract $1,280 from both sides.
0.02x = $110 Divide both sides by 0.02
x = $5,500  This is the amount borrowed from the bank at 10% interest.
$16,000 - x = $16,000 - $5,500 = $10,500 This is the amount borrowed from the credit union at 8% interest.