Problema Solution
An individual has two loans. totaling $2400. One loan charges 5% interest
and the other charges 6% interest. If the interest for one year is $132,how much money is borrowed at each rate?
Answer provided by our tutors
Loan1 = x, Loan2 = y
Equation1: Total amount of Loan = x + y = 2400
Equation2: (x * 5/100) + (y * 6/100) = 132
(x * 5/100)*100 + (y * 6/100)*100 = 132*100
Equation3: 5x + 6y = 13200
Now by solving Equaiton 1 & 3:
Multiplying Equation1 by 5 and subtracting from Equaiton3:
5x + 6y = 13200
-(5x + 5y = 5*2400)
5x + 6y = 13200
-5x - 5y = 12000
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y = 1200
Put y = 1200 in Euqsiton 1:
x + 1200 = 2400
x = 2400 - 1200 = 1200
Amount of Loan1 = $1200
Amount of Loan2 = $1200