Laura borrowed a total of $22,000 from two different banks

Question

Laura borrowed a total of $22,000 from two different banks to start a business.

One bank charged 5% simple interest, and the other charged 6.5% simple interest.

If the total interest after 3 years was $3480 determine the amount borrowed from each bank.

Answer 1

.065(x)(3) + .05(22,000-x)(3) = 3480

.065x + .05(22,000-x) = 3480/3 = 1160

;005x = 1160 -.05(22,000) = 1160-1100 = 60

x = 60/.005 = $12,000 borrowed at 6.5%

22,000-x = $10,000 borrowed at 5%

assuming simple interest only, with no compounding