An amount of 4700 is borrowed for 5 years at 6.75% interest, compound annually.If the loan is paid in full at the end of that pe
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Answer:
The amount $15000 is divided as
in 2% = $7000
in 5% = $8000
Step-by-step explanation:
It is given that the total amount is $15000 and rates of interests are 2% and 5%.
<em>Let the amount invested in 2% be "x", so the amount invested in 5% is (15000 - x).</em>
The annual interest on x part is given as,
=
Similarly, The annual interest on (15000 - x) part is given as,
=
the total annual interest is given as $540
Thus, <em>540 = </em>
<em>54000 = </em>
<em>21000 = 3(x)</em>
x = = 7000
Thus the shares are $7000 and (15000 - 7000) $8000 .