Problema Solution

A Realtor borrowed $90,000 to develop property. He borrowed part of the money at 5.5 % interest and the rest at 6.0% . The annual interest rate on the two loans amounts was $5,125. How much was borrowed at each rate?

Answer provided by our tutors

let


x = the money borrowed at 5.5%

y = the money borrowed at 6.0%


Realtor borrowed $90,000 to develop property


x + y = 90000


the annual interest rate on the two loans amounts was $5,125


0.055*x + 0.06y = 5125


by solving the system of equations


x + y = 90000

0.055*x + 0.06y = 5125


we find


x = $55,000


y = $35,000


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there were $55,000 borrowed at 5.5% interest and $35,000 borrowed at 6.0% interest.