Last year, a women's professional organization made two small business loans totaling $31,000 to young women beginning their own businesses. The money was lent at 7% and 10% simple interest rates. If the annual income the organization received from these loans was $2,920, what was each loan amount?
A) 8500 at 7% 22500 at 10 %
B) 5500 at 7 % 25500 at 10 %
C) 4000 at 7 % 27000 at 10 %
D) 7500 at 7 % 23500 at 10 %
E) 6000 at 7 % 25000 at 10 %

Question

Last year, a women's professional organization made two small business loans totaling $31,000 to young women beginning their own businesses. The money was lent at 7% and 10% simple interest rates. If the annual income the organization received from these loans was $2,920, what was each loan amount?
A) 8500 at 7%  22500 at 10 %
B) 5500 at 7 % 25500 at 10 %
C) 4000 at 7 % 27000 at 10 %
D) 7500 at 7 % 23500 at 10 %
E) 6000 at 7 % 25000 at 10 %

Quizplus · Accepted Answer

Let the amount lent at 7% be $x and the amount lent at 10% be $31,000 - x. The total interest from both loans is $2,920. The equation for the total interest is 0.07x + 0.10(31,000 - x) = 2,920. Solving this equation gives x = 6,000, so the amounts are $6,000 at 7% and $25,000 at 10%.

Last Year, a Women's Professional Organization Made Two Small Business