Asked by Molly

1. John’s loans for his business total $155,000. One of the loans is a SBA loan at 11% interest; the other loan is a Community Business Partner loan whose interest is 6.5% After one year the loans accumulated $12,325 in interest. What was the amount of each loan?

I am not sure what equation needs to be used for this

Answers

Answered by Henry
Invested $X in SBA.
Invested $Y in CBP.
X + y = $155,000,
Y = 155000 - x.

0.11x + 0.065(155000-x) = 12,325,
0.11x + 10075 - 0.065x = 12,325,
0.045x = 12,325 - 10075 = 2250,
X = $50,000 Invested in SBA.

Y = 155000 - 50000 = $105,000 Invested in CBP.
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