A business has two loans totaling $50000. One loan has a rate of 8% and the other has a rate of 12%. This year, the business expects to pay $4500 in interest on the two loans. How much is each loan?

Answer 1

X+Y = 50000

0.08X + 0.12Y = 4500

0.08X + 0.12 ( 50000 - X) = 4500

8x + 12(50000 - x) = 450000

8x + 600000- 12x = 450000

-4x = 450000-600000

-4x = -150000

x=37500

y = 12500