Answer:
He borrowed $14,769.23 at 6% and $5,230.77 at 7%
Step-by-step explanation:
Let
x ----> loan amount at 6%
20,000 -x ----> loan amount at 7%
we know that
The simple interest formula is equal to
where
I is the Final Interest Value
P is the loan amount
r is the rate of interest
t is Number of Time Periods
in this problem we have
Loan at 6%
----> equation A
Loan at 7%
----> equation B
Remember that
the annual interest charge on the 6% loan is $520 more than on the 7% loan
so
----> equation C
substitute equation A and equation B in equation C
solve for x
Find the value of (20,000-x)
therefore
He borrowed $14,769.23 at 6% and $5,230.77 at 7%