Word problem

Question

laura borrowed a total of $20,000 from two different banks to start a business. One bank charged the equivalent of 4% simple interest, and the other charged 5.5% interest. If the total interest after 1 yr was $910, determine the amount borrowed from each bank.

Answer 1

X borrowed from bank 1

y borrowed from bank 2

 

x+y=20000

 

Simple interest is

.04*x + .055y=910

 

.04*x + .055(20000-x)= 910

 

 

1100-910=.015x

x=12667 invested at 4%

y=7333 invested at 5.5%