Answer:
The first loan L1 = $20,000
This is the loan with 3% simple interest
The second loan L2 = $4,000
This is the loan with 5.5% simple interest
Step-by-step explanation:
L1 + L2 = $24,000 ...(1)
4(3% of L1) + 4(5.5% of L2) = $3,280 ...(2)
Where the first term in equation (2) represents the total interest paid on loan 1 after 4 years
The second term represents total interest accruing to loan 2 after 4 years
From equation (1), we single out L1
L1 = 24,000 - L2
Substitute this value for L1 in equation (2)
288,000 + 10L2 = 328,000
L2 = $4,000
L1 = $24,000 - $4,000 = $20,000
