Question

Charmaine borrowed $21.500 to buy a truck for her business. She borrowed from her parents who charge her 7% simple interest. She borrowed from a credit union that charges 2% simple interest, and she borrowed from a bank that charges 3% simple interest. She borrowed six times as much from her parents as from the bank, and the amount of interest she paid at the end of 1 yr was $1050. How much did she borrow from each source? from her parents, from the credit union, and from the Charmaine borrowed bank

Answer 1

Let's break down the given information and solve the problem step by step.

Let's assume the amount Charmaine borrowed from the bank is x dollars. According to the given information, she borrowed six times as much from her parents, so the amount borrowed from her parents would be 6x dollars.

Now, let's calculate the interest for each source:

Interest from parents: (6x) * 0.07 = 0.42x dollars

Interest from credit union: x * 0.02 = 0.02x dollars

Interest from bank: x * 0.03 = 0.03x dollars

The total interest paid is given as $1050. So we can set up the following equation:

0.42x + 0.02x + 0.03x = 1050

Combining like terms, we have:

0.47x = 1050

Dividing both sides by 0.47:

x = 1050 / 0.47

x ≈ 2234.04

Therefore, Charmaine borrowed approximately $2234.04 from the bank.

Now we can calculate the amount she borrowed from her parents:

Amount borrowed from parents = 6x = 6 * 2234.04 ≈ $13344.24

Finally, let's calculate the amount she borrowed from the credit union:

Amount borrowed from credit union = x = 2234.04 ≈ $2234.04

So, Charmaine borrowed approximately $13,344.24 from her parents, $2,234.04 from the credit union, and $2,234.04 from the bank.