Problema Solution
to buyboth a new car and a new house Tina sought two loans totalling 260,394. the simple interest rate on the first loan was 3.7% while the simple interest rate on the second loan was 8.8% at the end of the first year tina paid combined interest payment of 22,611.73 what were the amounts of the two loans
Answer provided by our tutors
Total money borrowed = 260394
r= rate
p = principal
t= time = 1 year
First loan:
r = 0.037
p = x
Second loan:
r =0.088
p = 260394-x
interest = 22611.73
0.037x + 0.088(260394-x) = 22611.73
x = 5940.04
First loan amount: 5940.04
second loan amount: 260394-5940.04 = 254454.96