Question

Edgar borrowed a total of $10,000 from three sources: the bank, his mom, and a close friend. After one year, he paid a total of $624 in simple interest toward the three loans. The bank charged an interest rate of 7% per year, his mom charged 5%, and the friend charged 6%. The amount he borrowed from his mom exceeded the amount he borrowed from his friend by $200. What amount did Edgar borrow from the bank?

Answer 1

The amount that Edgar borrowed from the bank is $5,000. From his mom is $2,600 while from his friend is $2,400. This can be checked using the total interest of $624.

Bank: $5,000 x 0.07 = $350
Mom: $2,600 x 0.05 = $130
Friend: $2,400 x 0.06 = $144

Adding all three results to $624.