Question

Alice took out a $15,000 loan for college. She is borrowing money from two banks. Bank A charges an interest rate of 6%, and Bank B charges an interest rate of 7%. After one year, Alice owes $960 in interest. How much money did she borrow from Bank A?

Answer 1

The amount borrowed from bank A = $9000

Explanation:

Formula:

I = PNR/100

P - Principle amount

N - Number of years

R - Rate of interest

It is given that,Alice took out a $15,000 loan for college. Bank A charges an interest rate of 6%, and Bank B charges an interest rate of 7%. After one year, Alice owes $960 in interest.

Let 'x' be the amount borrowed from Bank A

Then the amount borrowed from Bank B = 15000 - x

To find the value of x

I = PNR/100

Here I = $960

(x*1*6)/100 + (15000 - x)*1*7/100 = 960

6x/100 + (15000*7)/100 - 7x/100 = 960

1050 - x/100 = 960

x/100 = 1050 - 960 = 90

x = 90 * 100 = 9000

Therefore the amount borrowed from bank A = $9000

Answer 2

Final answer is $9000.

Explanation:

Given that Alice took out a $15,000 loan for college. She is borrowing money from two banks. Bank A charges an interest rate of 6%, and Bank B charges an interest rate of 7%. After one year, Alice owes $960 in interest.

Now we need to find out about how much money did she borrow from Bank A.

So let's assume that money borrowed from bank A = x

then money borrowed from bank B = 15000-x

Interest from bank A = 6% of x = 0.06x

Interest from bank B = 7% of (15000-x) = 0.07(15000-x)

Given total interest is $960. So we can write equation:

0.06x+0.07(15000-x)=960

0.06x+1050-0.07x=960

1050-0.01x=960

-0.01x=960-1050

-0.01x=-90

`x=(-90)/(-0.01)`

x=9000

Hence final answer is $9000.