Question

Loan x has a principal of $10,000x and a yearly simple interest rate of 4%. Loan y has a principal of $10,000y and a yearly simple interest rate of 8%. Loans x and y will be consolidated to form loan z with a principal of $(10,000x + 10,000y) and a yearly simple interest rate of r%, where r = .In the table, select a value for x and a value for y corresponding to a yearly simple interest rate of 5% for the consolidated loan. Make only two selections, one in each column.

Answer 1

Answer:

X = 32

Y = 96

Explanation:

Z = 5%

Z = (0.04X + 0.08Y) / (X + Y)

we can substitute Z:

0.05 = (0.04X + 0.08Y) / (X + Y)

0.05 (X + Y) = 0.04X + 0.08Y

0.05X + 0.05Y = 0.04X + 0.08Y

0.01X = 0.03Y

X = 0.03Y / 0.01 = 3Y

This means that we must choose one value for Y that divided by 3 equals another option:

the only possibility that fits the equation is:

• X = 32
• Y = 96