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Michelle borrows a total of $6000 in student loans from two lenders. One charges 4.4% simple interest and the other charges 6
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Answer #1

Let the amount of loan Michelle borrowed from lender 1 be x dollars and the amount of loan Michelle borrowed from lender 2 be y dollars.

Total amuount of loan = $6000

x + y = 6000 ......(1)

Lender 1 charges 4.4% simple interest and lender 2 charges 6.3% for 4 years. Total interest after 4 years is $1246.

Simple Interest = (Principal x rate x time)/100

\small \frac{x\times 4.4\times 4}{100}+\frac{y\times 6.3\times 4}{100}=1246

\small \frac{x\times 4.4}{100}+\frac{y\times 6.3}{100}=311.5

\small x\times 4.4+y\times 6.3=31150

\small 44x+63y=311500 ...........(2)

From eq.(1),

y = 6000 - x

44x + 63(6000 - x) = 311500

44x + 378000 - 63x = 311500

44x - 63x = 311500 - 378000

-19x = -66500

x = 3500

y = 6000 - 3500

y = 2500

Michelle borrowed $3500 at 4.4%, and

Michelle borrowed $2500 at 6.3%.

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