Problema Solution
A couple needs to borrow $5600 for a home improvement project. They borrow part of the money at 7.5% simple interest and the rest at 11.25% simple interest. How much do they borrow from each source if the interest for one year is $476.25?
Answer provided by our tutors
Let
x = the amount of money borrowed at 7.5% simple interest
y = the amount of money borrowed at 11.25% simple interest
x + y = 5600
0.075x + 0.1125y = 476.25
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x = $4,100
y = $1,500
The couple borrows $4,100 from the source that has 7.5% simple interest and $1,500 from the source that has 11.25% simple interest.