Problema Solution
To buy both a new car and a new house, TIna sought two loans totalling $332,888. THe simple interest rate on the first loan was 8.9%, while the simple interest rate on the second loan was 6.0% At the end of the first year, TIna paid a combined interest payment of $20,230.51 WHat were the amounts of the two loans?
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To buy both a new car and a new house, TIna sought two loans totalling $332,888. THe simple interest rate on the first loan was 8.9%, while the simple interest rate on the second loan was 6.0% At the end of the first year, TIna paid a combined interest payment of $20,230.51 WHat were the amounts of the two loans?
Solution:
Car loan: x
House loan: y
SO the equation is
x + y =332,888
0.089x + 0.06y =20,230.51
We solve it
x = 8870
y = 324,010
So
Car loan: $8870
House loan: $324,010