Problema Solution
Renaldo has two credit cards. One card is a MasterCard with an annual percentage rate (APR) of 15%, and the other is a store credit card with an APR of 25%. The total Renaldo owes is $4400, and he paid $760 this year in interest. How much does Renaldo owe on each card?
Answer provided by our tutors
let
x = the amount that Renaldo owes to MasterCard
y = the amount that Renaldo owes to a store credit card
The total Renaldo owes is $4400 and he paid $760 this year in interest:
0.15x + 0.25y = 760
x + y = 4400 - 760
by solving the above system of equations we find
........
click here to see all the system of equations solution steps
........
x = $1,500
y = $2,140
$1,500 + 0.15*$1,500 = $1,725
$2,140 + 0.25*$2,140 = $2,675
Renaldo owes total of $1,725 to MasterCard and $2,675 to a store credit card.