Laura borrowed a total of $18,000 from two different ba to start a business. One bank charged the equivalent of 6% simple interest, and the other charged 7.5% interest. If the total interest after 2 years was $2220, determine the amount borrowed from each bank.

sibuzwaW

sibuzwaW

Answered question

2021-02-25

Laura borrowed a total of $18,000 from two different ba
to start a business. One bank charged the equivalent of 6% simple interest, and the other charged 7.5% interest. If the total interest after 2 years was $2220, determine the amount borrowed from each bank.

Answer & Explanation

yagombyeR

yagombyeR

Skilled2021-02-26Added 92 answers

Let x be the amount invested at 6% so that 18000-x is the amount invested at 7.5% both in dollars.
The total interest in 2 years is $2220 so we can write: 0.06x(2)+0.0075(18000-x)(2)=2220
Solve for x:
0.12x+2700-0.15x=2220
-0.03x+2700=2220
-0.03x=-480
x=4800.03
x=16000
So, the amounts borrowed are:
Bank at 6%$16000
Bank at 7.5%2000
Jeffrey Jordon

Jeffrey Jordon

Expert2021-08-10Added 2605 answers

Explanation on video

Jeffrey Jordon

Jeffrey Jordon

Expert2021-10-09Added 2605 answers

Answer is given below (on video)

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