Answered

PLEASE HELP, WILL MARK BRAINLIEST
Mark owes $12,000 on two loans. The interest rate on the first loan is 8 and the interest rate on the second loan was 9%. The
total amount of interest he has paid in one year is $1,010. What was the principal for each loan?
Provide your answer below:

Answer :

SEMSEE45GO

Answer:

principal of first loan = $7,000

principal of second loan = $5,000

Step-by-step explanation:

Let x = principal of first loan

Let y = principal of second loan

Given:

  • Interest rate on first loan = 8% = 0.08
  • Interest rate on second loan = 9% = 0.09
  • Total amount of interest paid = $1,010

Create two equations with the given information:

Equation 1:  x + y = 12000

Equation 2:  0.08x + 0.09y = 1010

Rewrite Equation 1:

⇒ x = 12000 - y

Substitute into Equation 2 and solve for y:

⇒ 0.08(12000 - y) + 0.09y = 1010

⇒ 960 - 0.08y + 0.09y = 1010

⇒ 0.01y = 50

⇒ y = 5000

Substitute found value of y into Equation 1 and solve for x:

⇒ x + 5000 = 12000

⇒ x = 7000

Go Question: Other Questions