SUMMARY
Marianne borrowed a total of $10,000, with $x from a friend at 8%, $2x from a bank at 9%, and the remainder from an insurance source at 5%. The total interest paid after one year amounts to $830. By setting up the equation for interest from each source, the equation becomes 0.08x + 0.18x + 0.05(10000 - 3x) = 830. Solving this equation provides the exact amounts borrowed from each source.
PREREQUISITES
- Understanding of algebraic equations
- Knowledge of interest calculations
- Familiarity with linear equations
- Basic financial literacy regarding loans
NEXT STEPS
- Study how to solve linear equations with multiple variables
- Learn about calculating simple interest versus compound interest
- Explore financial modeling techniques for loan scenarios
- Review algebraic methods for solving word problems
USEFUL FOR
Students studying Algebra 2, educators teaching financial mathematics, and individuals seeking to understand loan interest calculations.