Question

To purchase a car costing $10,000, the buyer bor-

rowed part of the money from the bank at 9% sim-
ple interest and the rest from her mother-in-law at
12% simple interest. If her total interest for the year
was $1080, how much did she borrow from the
bank?

Answer 1

She borrowed 4000 from bank.

Explanation:

Let 'y' be the amount borrowed from bank. Then 10000-y is the amount borrowed from her mother-in-law.

Let x= interest amount gained by bank . Then 1080- x = interest gained by mother-in-law

I1= interest rate by bank= 9%

I2= interest rate by mother-in-law=12%

Time(T) = 1 year

Now, By Simple Interest formula:

x=PTR/100

Or, x=(y*1*9)/100

Or,100x=9y

or,9y-100x=0...........................Equation (i)

Again 1080-x= ((10000-y)*1*12)/100

Or, 108000-100x=120000-12y

Or, 12y-100x=12000.................Equation(ii)

Solving equation (i) and (ii), we get

y= 4000, which the amount borrowed from bank.