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.

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.

Question
Equations and inequalities
asked 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.

Answers (1)

2021-02-26
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
\(\displaystyle{x}=-\frac{{480}}{{-{{0.03}}}}\)
x=16000
So, the amounts borrowed are:
Bank at \(\displaystyle{6}\%\to\${16000}\)
Bank at \(\displaystyle{7.5}\%\to{2000}\)
0

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