Problema Solution

Tina sought two loans totalling 260,394.00 the simple interest rate on the first loan was 3.7% while the simple interest on the second loan was 8.8% at the end of the first year tina paid a combined interest payment of 22,611.73 What were the amounts of the two loans.

Answer provided by our tutors

First loan: x

Second loan: y

The equation is

x + y = 260,394.00

3.7%*x + 8.8%*y = 22,611.73

We solve it

x = 5,940.04

y = 254,453.96

So

First loan: 5,940.04

Second loan: 254,453.96