Solving applications with Simple interest: Rocco borrowed total of $5000 from two....

DrZoddiak

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"Rocco borrowed a total of $5000 from two student loans. One loan charged 3% simple interest and the other charged 2.5% simple interest, both payable after graduation. If the interest he owned after 1 year was $132.50 determine the amount of principal for each loan."

I haven't done interest problems in the past and this was meant to be review so any help would be great. I have the equation for simple interest, and I know the basic word meanings but explanations of them would be a huge help as well.
I= p*r*t
 
"Rocco borrowed a total of $5000 from two student loans. One loan charged 3% simple interest and the other charged 2.5% simple interest, both payable after graduation. If the interest he owned after 1 year was $132.50 determine the amount of principal for each loan."

I haven't done interest problems in the past and this was meant to be review so any help would be great. I have the equation for simple interest, and I know the basic word meanings but explanations of them would be a huge help as well.
I= p*r*t

Assume that:

The first loan principal amount was = P1

The first loan principal amount was = P2

Then

P1 + P2 = 5000 .......................................(1)

then

P1 * 0.03 + P2 * 0.025 = 132.5 ..............(2)

Two equations [(1) & (2)] and two unknowns [P1 & P2]

Solve for P1 & P2 from (1) and (2)
 
That has honestly confused me more. Just delete this post I'll find help elsewhere. You only attempted to answer half my question, and I'm 90% sure it didn't follow the equation I was told to follow, or if it was unable to be used I wasn't told.
 
That has honestly confused me more...


You only attempted to answer half my question, and I'm 90% sure it didn't follow the equation I was told to follow...


Sorry 'bout that; let's try again. But first, I'd like to know whether you have experience solving equations. For example, can you solve the following equation for x?


0.03*x + 0.025*(5000 - x) = 132.5


Let us know, and we can go from there.


Also, I'm not sure what the two halves of your question are, but Subhotosh actually did use the formula which you posted for simple interest when he wrote P1*0.03 (for the interest owed on the first loan) and P2*0.025 (for the interest owed on the second loan). He just omitted the factors of t because multiplying by 1 doesn't change anything.


I = p*r*t


Symbol I stands for the interest (that is, the cost of borrowing p dollars at some rate r for t years)


Symbol p stands for the principle (that is, the amount of the loan)


Symbol r stands for the rate (that is, the decimal form of the interest rate)


Symbol t stands for the elapsed time (that is, the number of years)


In your exercise, p is unknown, for each loan (finding the principle amount of each loan is the question).


For one loan, r=0.03 (the decimal form of 3%). For the other loan, r=0.025 (the decimal form of 2.5%).


And the elapsed time is only one year, in your exercise. So t=1.


Because t=1, in your exercise, you can use I=p*r.


Now, try to solve that equation for x above, and please let us know how far you get.


By the way, in that equation, symbol x stands for the principle of the 3% loan. (We'll explain why, later.)


Cheers :cool:
 
"Rocco borrowed a total of $5000 from two student loans. One loan charged 3% simple interest and the other charged 2.5% simple interest, both payable after graduation. If the interest he owned after 1 year was $132.50 determine the amount of principal for each loan."

I haven't done interest problems in the past...
Then the first thing you need to do is study a few lessons, so that you can learn the basic background material. (One worked solution would likely leave you completely confused, since you wouldn't even understand the variables, equations, terms, or techniques, as indeed you [indignantly] didn't.)

There are things called "search engines" which can provide lists of links to web pages with content relevant to your topic area. For instance, if you click here, you'll open a page with the word "Google", with an empty box below. Into that box, you could type "search terms" such as "simple interest word problems" (without the quote marks), and you'll be taken to a long list of links for lessons on how to set up and solve simple-interest word problems. (here's the list)

Please study at least three lessons from the list. Once you have learned the basic terms and techniques, please review the extensive helps you've already been provided. I think you'll find that the helper was quite clear and complete. Thank you! ;)
 
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