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Interest Problem in Integrated Reasoning

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Interest Problem in Integrated Reasoning

by Rudy414 » Tue May 14, 2013 7:19 am
Loan X has a principal of $10,000X and a yearling simple interest rate of 4%. Loan Y has a principal of $10,000Y and a yearly simple interest rate of 8%. Loans X and Y will be consolidated for form Loan Z witha principal of $(10,000X + 10,000Y) and a yearly simple interest rate of r%, where r = (4x+8y)/(x+y). Select value for X and Y corresponding to a yearly simple interest rate of 5%.

21
32
51
64
81
96

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by Jim@StratusPrep » Tue May 14, 2013 9:38 am
This is a weighted average problem. To get an interest rate of 5% X must be 3 times Y.

This can be done through a simple calculation:

|4% - 5%| / |8% - 5%|

Thus, 32 and 96 are your answers...
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by Rudy414 » Tue May 14, 2013 12:01 pm
Wow, so the whole r% and r= stuff is completely irrelevant to solving this problem?
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