Problema Solution
a student takes out two loans totaling $5000 at 4% and 6% annual interest. The total interest after one year is $254. Find the amount of each loan?
Answer provided by our tutors
let
x = the amount of the 4% interest loan
y = the amount of the 6% interest loan
a student takes out two loans totaling $5000
x + y = 5000
the total interest after one year is $254
0.04x + 0.06y = 254
by solving the system of equations
x + y = 5000
0.04x + 0.06y = 254
we find
x = $2,300
y = $2,700
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the amount of the 4% interest loan is $2,300.
the amount of the 6% interest is $2,700.