Rate and interest

Question

Mr. Jackson borrowed money from his bank and on his life insurance to start a business. His interest rate on the bank loan was 10%, and his rate on the insurance loan was 14%. If the total amount borrowed was $100,000 and his total yearly interest payment was $12,200, how much did he borrow from the bank?

Answer 1

X+Y = 10000

 

0.1X + 0.14Y =12200

 

0.1X + 0.14(100000 - X) = 12200

 

0.1X + 14000 - 0.14X = 12200

 

14000 - 0.04X  = 12200

 

-0.04X = -1800

 

4X = 180000

 

X = 45000

 

He borrowed 45000 from the bank

and 55000 from the insurance