A student took out two loans totaling $\$ 15,000$ to help pay for college expenses. One loan was at $10 \%$ simple interest, and the other was at $5 \%$. After one year, the student owed $\$ 1250$ in interest. Find the amount of the loan at $5 \%$.
A) $\$ 5000$
B) $\$ 1000$
C) $\$ 250$
D) $\$ 10,000$

Question

Quizplus · Accepted Answer

Let the amount at $5\%$ be $x$, so the amount at $10\%$ is $\$15000 - x$. The interest from the first loan is $0.05x$ and from the second loan is $0.10(15000 - x)$. The total interest is $0.05x + 0.10(15000 - x) = 1250$. Solving this equation gives $x = \$5000$.

A Student Took Out Two Loans Totaling $15,000\$ 15,000$15,000 To Help Pay for College Expenses

A Student Took Out Two Loans Totaling $\$ 15,000$ To Help Pay for College Expenses