Jessica has a credit card from party bank and another from artic bank. she owes artic bank $150 more than party bank. party bank charges 16% simple interest per year and artic bank charges 17% per year. the yearly interest charge Jessica needs to pay is $279.60. how much money does Jessica owe artic bank before interest charges?
Add up the interest owed to each bank:
.16(a-150)+.17a = 279.60
a = 920
So, she owes
$920 to artic
$770 to party
To find out how much money Jessica owes to Artic Bank before interest charges, we can use the given information about the interest rates and the interest charge she needs to pay.
Let's assume Jessica owes x dollars to Party Bank. According to the information, she owes Artic Bank $150 more than Party Bank.
Hence, the amount Jessica owes to Artic Bank would be x + $150.
Now, we know that Party Bank charges 16% simple interest per year, and Artic Bank charges 17% per year. The yearly interest charge Jessica needs to pay is $279.60.
Using the formula for simple interest, the interest charged by Party Bank would be:
Amount of interest charged by Party Bank = (16/100) * x
And the interest charged by Artic Bank would be:
Amount of interest charged by Artic Bank = (17/100) * (x + $150)
According to the given information, the total interest charge Jessica needs to pay is $279.60. So we can set up the following equation:
(16/100) * x + (17/100) * (x + $150) = $279.60
To solve this equation and find the value of x, we can simplify it:
(16/100) * x + (17/100) * x + (17/100) * $150 = $279.60
Solving this equation will give us the value of x, which is the amount Jessica owes to Party Bank before interest charges.