Problema Solution

Paquet wants to start a new company that makes hub caps and needs to borrow a total of $15,000. Part of the money is borrowed from a loan shark that charges 12% simple interest and the remaining is borrowed from a bank that charges 7% simple intrest. If Paquet's total interst for the is $1475, then find the amount he borrowed from each source.

Answer provided by our tutors

0.07(15000-x)+0.12(x) = 1475

1050-0.07x+0.12x = 1475

x =8500

 

he borrowed 8500 from the 12% and 6500 from the 7%