How much did the company borrow for each loan?

Mathematics
Tutor: None Selected Time limit: 1 Day

Your company took a start up loan at 5% interest. You also took a capital improvement loan for 7% interest. The start up loan is eight times larger than the improvement loan. The interest paid on both loans for one year is $9,400.

Sep 12th, 2015

Thank you for the opportunity to help you with your question!

start up  is 8 times larger

interest = $9400

let start up be n and the other loan be x

5% of n + 7% of x= 9400

n=8x

0.05n + 0.07x=9400

0.05 (8x) +0.07=9400

Multiply through by 100 ta make whole numbers

5(8x) +7x = 940000

40x+ 7x= 940000

47x=940000

x=940000

x=$ 20,000

Substituting in the equation gives

start up $160000 and the other $20000


Please let me know if you need any clarification. I'm always happy to answer your questions.
Sep 12th, 2015

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