Question

Amanda borrowed $7,000 from two sources: her parents and a credit union. her parents charge 4% simple interest and the credit union charged 5% simple interest. if after one year Amanda paid $285 in interest, how much did she borrow from her parents and how much did she borrow from the credit union

Answer 1

Amanda borrowed $7,000 from two sources: her parents and a credit union. her parents charge 4% simple interest and the credit union charged 5% simple interest. if after one year Amanda paid $285 in interest, how much did she borrow from her parents and how much did she borrow from the credit union​

Let

x -----> amount borrowed from her parents

7,000-x -----> amount borrowed from the credit union

so

we have

x(0.04)+(7,000-x)(0.05)=285

solve for x

0.04x+350-0.05x=285

0.05x-0.04x=350-285

0.01x=65

x=6,500

7,000-x=500

therefore

amount borrowed from her parents was $6,500

amount borrowed from the credit union was $500