Posted by **Julia** on Saturday, February 14, 2009 at 5:06pm.

Chris takes out two loans. He borrows $800 more from a credit union that charges 12% interest than from a bank that charges 15% interest. If his interest payments total $420 annually, how much does he borrow at each rate?

- Algebra -
**Damon**, Saturday, February 14, 2009 at 5:16pm
assuming no compunding of interest:

borrow x at .15

borrow (x+800) at .12

then

.15 x + .12 (x+800) = 420

- Algebra -
**Reiny**, Saturday, February 14, 2009 at 5:17pm
let his loan from the bank be $x

let the loan from the credit union be $(x+800)

.15x + .12(x+800) = 420

solve for x, let me know what you got.

- Algebra -
**Julia**, Saturday, February 14, 2009 at 5:21pm
There has to be two equations. I got 1,200 for x...

- Algebra -
**Damon**, Saturday, February 14, 2009 at 5:39pm
1200 and 2000 are the correct amounts.

- Algebra -
**Damon**, Saturday, February 14, 2009 at 5:44pm
If you really, really, want to make two equations out of this:

x = amount at .15

y = amount at .12

then

.15 x + .12 y = 420

y = x + 800

then substitute equation 2 into equation 1

.15 x + .12(x+800) = 420

which is where we started.

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