Question

A student borrows a total of $5400 in student loan from two lenders. Bank One charges 4.3% simple

interest and Bank Two charges 5.9% simple interest. She is not required to pay off the principal for 3
years. However, at the end of three years, she will owe a total of $888.60 for interest from both loans.
How much did she borrow from Bank One?
non

Answer 1

9514 1404 393

Answer:

$1400

Explanation:

Let x represent the amount borrowed from Bank 1. For each loan, the interest is given by I=Prt, where P is the principal borrowed at rate r for t years.

Then the total interest over 3 years is ...

3(4.3%·x +5.9%(5400 -x)) = 888.60

-1.6%·x +318.60 = 296.20 . . . . . . . . . . . divide by 3, simplify

-1.6%·x = -22.40 . . . . . . . . . . . subtract 318.60

x = 22.40/0.016 = 1400

The student borrowed $1400 from Bank 1.