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Eric borrowed a total of $3000 from two student loans. One loan charged 4% simple interest and the other charged 3.5% simple
interest, both payable after graduation. If the interest he owed after 2 years was $215, determine the amount of principal for each
loan.

Sagot :

francocanacari

Answer:

$ 500 was the principal of the loan at 4%, and $ 2,500 was the principal of the loan at 3.5%.

Step-by-step explanation:

Given that Eric borrowed a total of $ 3000 from two student loans, and one loan charged 4% simple interest and the other charged 3.5% simple interest, both payable after graduation, if the interest he owed after 2 years was $ 215, to determine the amount of principal for each loan, the following calculation must be performed:

4 x 2 = 8

3.5 x 2 = 7

1500 x 0.08 + 1500 x 0.07 = 225

1400 x 0.08 + 1600 x 0.07 = 224

100 x 0.08 + 2900 x 0.07 = 211

500 x 0.08 + 2500 x 0.07 = 215

Therefore, $ 500 was the principal of the loan at 4%, and $ 2,500 was the principal of the loan at 3.5%.

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