Question

Amanda borrowed $6000 from two sources: her parents and a credit union. Her parents charged 2% simple interest and the credit union charged 6% simple

interest. If after 1 yr, 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 $1875 from her parents and $4125 from the credit union

Explanation:

The total amount of interest Amanda paid after one year is $285.

Let P be the amount Amanda borrowed from her parents, and C be the amount she borrowed from the credit union.

The total amount Amanda borrowed was P + C = $6000.

The total interest Amanda paid was 2% * P + 6% * C = $285.

We can set up the following system of equations to represent these relationships:

P + C = $6000

0.02P + 0.06C = $285

To solve for P and C, we can first solve for P in terms of C.

Substituting the first equation into the second equation, we get:

0.02(6000 - C) + 0.06C = $285

0.02(6000) - 0.02C + 0.06C = $285

120 - 0.02C + 0.06C = $285

-0.04C = $165

C = -$165/-0.04 = $4125

Substituting this value for C back into the first equation, we get:

P + $4125 = $6000

P = $6000 - $4125 = $1875

Therefore, Amanda borrowed $1875 from her parents and $4125 from the credit union.