Problema Solution
To buy both a new car and a new house, Tina sought two loans totaling $319,531. The simple interest rate on the first loan was 2.7%, while the simple interest rate on the second loan was 2.6%. At the end of the first year, Tina paid a combined interest payment of $8334.15. What were the amounts of the two loans?
Answer provided by our tutors
Let's say the first loan is for X. That means the second loan is for 319,531-X.
So interest on the first loan is 2.7%*X or 0.027X.
Interest on the second is 2.6%*(319,531 - X) or 0.026(319,531 - X)
Add these two interests together (they equal $8334.15), then solve for X.
0.027X + 0.026(319,531 - X) = 8334.15
0.027X + 8307.806 - 0.026X
0.027X - 0.026X = 8334.15 - 8307.806
0.001X = 26.344
X = 26.344/0.001 = $26,344, that is one loan amount & must be the car.
Amount of house loan is $319,531 - $26,344 = $293,187