Question

A student borrows a total of $5400 in student loan from two lenders. Bank One charges 4.3% simple

Answer 1

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Answer:

  $1400

Step-by-step explanation:

Let x represent the amount borrowed from Bank 1. For each loan, the interest is given by I=Prt, where P is the principal borrowed at rate r for t years.

Then the total interest over 3 years is ...

  3(4.3%·x +5.9%(5400 -x)) = 888.60

  -1.6%·x +318.60 = 296.20 . . . . . . . . . . . divide by 3, simplify

  -1.6%·x = -22.40 . . . . . . . . . . . subtract 318.60

  x = 22.40/0.016 = 1400

The student borrowed $1400 from Bank 1.