Laura borrowed a total of $21,000 from two different banks to start a business. One bank charged the equivalent of 5% simple interest, and the other charged
6.5% interest. If the total interest after 3 years was $3240, determine the amount borrowed from each bank.

Let x represent the principal on the business loan at 5%.
Then, (ID is
he
remaining amount borrowed at 6.5%
X

Question

contestada

Respuesta :

fichoh fichoh · Answer 1 · 2021-08-27T21:36:36+02:00

The amount borrowed from the first and second bank is 19000 and 2000 respectively.

Recall :

Simple interest = P×R×T

Total principal, P = 21000

Bank 1 :

Let, Principal, P = x

Rate, R = 5%

Time, T = 3

Bank 2 :

Principal, P = (21000 - x)

Rate, R = 6.5%

Time, T = 3

Total interest paid = 3240

Bank A interest + Bank B interest = total interest paid

[x × 5% × 3] + [(21000-x) × 6.5% × 3)] = 3240

0.15x + 4095 - 0.195x = 3240

-0.045x = 3240 - 4095

-0.045x = - 855

x = 19000

Hence,

19000 was borrowed from Bank 1

(21000 - 19000) = 2000 was borrowed from bank 2

Learn more : https://brainly.com/question/20831630