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?
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.
