Chelsea took out three loans for a total of

$76,000

to start an organic orchard. Her business-equipment loan was at an interest rate of 11%, the small-business loan was at an interest rate of

4%,

and her home-equity loan was at an interest rate of

5.5%.

The total simple interest due on the loans in one year was

$4535.

The annual simple interest on the home-equity loan was

$715

more than the interest on the business-equipment loan. How much did she borrow from each source?

Guest Oct 31, 2022

#1**+1 **

Let the business-equipment Loan = B

Let the home equity loan = H

0.055H =0.11B + 715,

0.055H + 0.11B + 0.04[76000 - H - B]=4535, solve for B, H

**B =$13,000 - amount of business-equipment loan**

**H =$39,000 - amount of home equity loan**

**76,000 - 13,000 - 39,000 =$24,000 - amount of small business loan.**

Guest Oct 31, 2022