Answer:
The federal loan is $62,500 and the bank loan is $3,300
The amount of the federal loan is $62,500 and the amount of the private loan is $3,300.
The formula is as follows:
I = P × T × R
Where I - interest, P - principal amount, R = r/100 (r - the rate of interest), and T - time period.
The given amount needed for Josie as a student loan is $65,800
This can be written as
f + p = $65,800 (since the loan is taken from two banks) ... (1)
Where f - the amount of federal loan and p - the amount of private loan
It is given that,
The total interest she owed for one year was $2,878.50 and the rate of interest is 4.5% and 2% for federal loans and private loans respectively.
So, we can write
0.045 f + 0.02 p = $2,878.50 ...(2)
Solving the equations 1 and 2, we get
f = $62,500 and p = $3,300
Therefore, the amount of each loan is $62,500 and $3,300.
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