John barley borrowed $25,000 for one year he borrowed some at 13% interest and the rest at 15% interest at the end of the year he owed $3,600 in interest how much did he borrow at each rate.?

Answer :

SOLUTION

We want to find the principal money borrowed each at 13% and 15% from a total money of $25,000.

Now, let the money he borrowed at 15% be x

and, let the money he borrowed at 13% be y.

This means that

[tex]\begin{gathered} x+y=25,000 \\ \text{and } \\ y=25,000-x \end{gathered}[/tex]

From the simple interest formula

[tex]\begin{gathered} I=\frac{PRT}{100} \\ \text{Where, I = interest, P = principal, R = rate and T = time } \end{gathered}[/tex]

Interest on 15% will be

[tex]\begin{gathered} I_{15}=\frac{x\times15\times1}{100} \\ I_{15}=0.15x \end{gathered}[/tex]

Interest on 13% will be

[tex]\begin{gathered} I_{13}=\frac{(25000-x)\times13\times1}{100} \\ I_{13}=(25000-x)\times0.13 \\ I_{13}=3250-0.13x \end{gathered}[/tex]

Now, both interest should be = $3,600

That is

[tex]\begin{gathered} I_{15}+I_{13}=3,600 \\ 0.15x+(3250-0.13x)=3,600 \\ 0.15x-0.13x=3,600-3250 \\ 0.02x=350 \\ x=\frac{350}{0.02} \\ x=17,500 \end{gathered}[/tex]

So, the money he borrowed at 15% is $17,500

And the money he borrowed at 13% is

[tex]25000-17500=7,500[/tex]

Hence, the answer is $17,500 at 15% and $7,500 at 13%.

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