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3 years ago

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When she graduates college Linda will owe 43,000 in student loans. The interest rate on the federal Liana is 4.5 % and the rate

on the private is 2%. The total interest she owes for one year was 1,585. What is the amount of each loan

1 answer:

Amanda [17]3 years ago

6 0

Answer:

federal loan amount = $29,000

private loan amount = $14,000

Step-by-step explanation:

Total amount is 43000

Let amount in federal be f

and

amount in private be 43,000 - f

Interest rate at federal is 0.045

Interest rate at private is 0.02

THus, we can form the equation shown below and solve:

f(0.045) + (43,000 - f)(0.02) = 1585

0.045f +860 - 0.02f = 1585

0.025f = 725

f = 29,000

and on private = 43,000 - 29,000 = 14,000

Hence

federal loan amount = $29,000

private loan amount = $14,000

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