Interest

Question

a corporation borrows $750000 some of the money was borrowed at 5%,8%,and 12% interest. there was 5 times the amount of 8% interest borrowed than 5%. the interest owed at the end of the year is 68000. how much 8% interest was borrowed

Answer 1

Let F be the 5% borrowing, T=12% borrowing, then 8% borrowing=750000-T-F=5F, because the 8% borrowing was 5 times the 5% borrowing. So 6F+T=$750000 and T=750000-6F.

0.05F+0.08(5F)+0.12T=$68000 interest.

Substitute for T:

0.45F+0.12(75000-6F)=$68000, 0.27F=90000-68000=$22000.

F=22000/0.27 and 8% borrowing=5F=110000/0.27=$407407.41 to the nearest cent.