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Bobby Borrowed 24,000 from two different banks to start a business One Bank charge the equivalent of 4% simple interest in the other charge 5.5% interest if the total interest after 1 year was $990 determine the amount borrowed from each Bank

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Answer:he borrowed $22000 from bank 1.

He borrowed $2000 from bank 2

Explanation:

Let x represent the amount of money that he borrowed from bank 1.

Let y represent the amount of money that he borrowed from bank 2.

Bobby Borrowed 24,000 from two different banks to start a business. This means that

x + y = 24000

The formula for simple interest is expressed as

I = PRT/100

Where

P represents the principal

R represents interest rate

T represents time

Considering the money borrowed from bank 1,

P = x

R = 4%

T = 1

I = (x × 4 × 1)/100 = 0.04x

Considering the money borrowed from bank 2,

P = y

R = 5.5%

T = 1

I = (y × 5.5 × 1)/100 = 0.055y

if the total interest after 1 year was $990, it means that

0.04x + 0.055y = 990 - - - - - -1

Substituting x = 24000 - y into equation 1, it becomes

0.04(24000 - y) + 0.055y = 990

960 - 0.04y + 0.055y = 990

- 0.04y + 0.055y = 990 - 960

0.015y = 30

y = 30/0.015 = $2000

Substituting y = 2000 into

x = 24000 - y, it becomes

x = 24000 - 2000

x = 22000

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