Erik Borrows a total of $6000 in two separate loans for one-year period. ..................

Question

Erik Borrows a total of $6000 in two separate loans for one-year period. At the end of one year, he pays back the entire amount of each loan plus simple annual interest at the rate of 4 percent for the first loan and 6 percent for the second loan. If the interest paid on each loan is same amount, how much total interest did Erik pay on these two loans

Answer 1

a + b = 6000

0.04a = 0.06b

First, let's solve the 1st equation for either a or b. I'm gonna do a.

a = 6000 - b

Now, substitute!

0.04(6000 - b) = 0.06b

240 - 0.04b = 0.06b

240 = 0.1b

b = $2400

a = 6000 - 2400

a = $3600