Question

Investment A clothing company borrows $700,000. Some of the money is borrowed at 8%, some at 9%, and some at 10% simple annual interest. How much is borrowed at each rate when the total annual interest is $60,500 and the amount borrowed at 8% is three times the amount borrowed at 10%?

Answer 1

amount invested at 10% --- x
amount invested at 8% ---- 3x
amount invested at 9% ----- 700,000-x-3x = 700,000-4x

.1x + .08(3x) + .09(700000-4x) = 60500
times 100
10x + 8(3x) + 9(700000-4x) = 6050000
34x + 6300000 - 36x = 6050000
-2x = -250,000
x = 125,000

amount borrowed at 10% = $125,000
amount borrowed at 8% = 375,000
amount borrowed at 9% = 200,000