Question

Pending Review Question 7

Alex borrowed $3500 from two banks. One bank charged a simple interest of 8% and another bank
charged a simple interest of 12%. If he paid a total interest of $332 for one year, find the amount that he
borrowed from each bank.

Answer 1

$ 2,200 for 8%, $ 1,300 for 12%

Explanation:

I=PRT

Let Bank 1 be x

332= x (8%) + (3,500-x) 12%

332= x (0.08) + (3,500-x) 0.12 change the percent to decimal

332= 0.08x + 420 - 0.12x

0.04x= 420-332

x=
`(88)/(0.04)`

x= 2,200 (Bank 1)

Bank 2= 3,500-Bank 1

Bank 2= 3,500- 2,200

Bank 2= 1,300