Posted by **Heather** on Saturday, February 13, 2010 at 2:30pm.

A customer purchased a car and financed $16,000. The customer borrowed part of the money from a bank charging 10% annual interest and the rest from a credit union at 8% annual interest. If the total interest for the year was $1,390 how much was borrowed from the bank and how much was borrowed from the credit union?

- Math -
**drwls**, Saturday, February 13, 2010 at 2:59pm
Set this up as an algebra problem in two variables. Let X be borrowed at 10% and Y be borrowed at 8%. Here is what you know:

X + Y = 16,000

0.10X + 0.08Y = 1390

Solve by substitution, or by multiplying the second equation by 10 and subtracting from the first.

X + 0.8Y = 13900

0.2Y = 2100

Y = 10,500

Now solve for X. It is the rest of the $16,000.

## Answer this Question

## Related Questions

- math - Model this situation w/ a linear system: Melissa borrowed $10, 000 for ...
- math - Model this situation w/ a linear system: Melissa borrowed $10, 000 for ...
- eco - Suppose a person pays $80 of annual interest on a loan that has a 5 ...
- lehman - Investment A clothing company borrows $700,000. Some of the money is ...
- Math - Jared obtained a simple interest loan for 1200 at a credit union at an ...
- Math - Interest is a concept familiar to most people: every credit card in ...
- Intermediate Algebra - Suppose you have a credit card debt of $6000. Last month...
- algebra - Calvin invested $7500 for one year, part 12% annual interest and the ...
- Math - On May 23, Samantha Best borrowed $40,000 from the Tri City Credit Union...
- math - On May 23, Samantha Best borrowed $4,000 from the Tri City Credit Union ...

More Related Questions