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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?

 Oct 31, 2022
 #1
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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.

 Oct 31, 2022

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