posted by Kimberly on .
To buy both a new car and a new house, Tina sought two loans totalling $78,825. The simple interest rate on the first loan was 0.2%, while the simple interest rate on the second loan was 5.0%. At the end of the first year, Tina paid a combined interest payment of $2817.23. What were the amounts of the two loans?
Let the two loan amounts be X and Y.
X + Y = 78,825
0.002X + 0.05Y = 2817.23
Solve those two simultaneous equations.
Multiply both sides of the second equation by 20.
0.04x + Y = 56,344.60
0.96 X = 22,480.40
X = 23,417.08
Y = 55,407.92