Solve the Problem $\$ 5,000$ In Student Loan from Two Lenders $4.1 \%$

question 194

Multiple Choice

Solve the problem.
-Franco borrows a total of $\$ 5,000$ in student loan from two lenders. One charges $4.1 \%$ simple interest and the other charges $6.1 \%$ simple interest. He is not required to pay off the principal for $3 \mathrm { yr }$ .
However, at the end of $3 \mathrm { yr }$ , he will owe a total of $\$ 825.00$ for interest from both loans. How much did he borrow from each lender?

• A) She borrowed \(\$ 3,900\) at \(4.1 \%\) and \(\$ 1,100\) at \(6.1 \%\).
• B) She borrowed \(\$ 1,100\) at \(4.1 \%\) and \(\$ 3,900\) at \(6.1 \%\).
• C) She borrowed \(\$ 1,500\) at \(4.1 \%\) and \(\$ 3,500\) at \(6.1 \%\).
• D) She borrowed \(\$ 3,500\) at \(4.1 \%\) and \(\$ 1,500\) at \(6.1 \%\).

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Definitions:

Familywise Error

The probability of making one or more false discoveries, or type I errors, among all hypotheses when performing multiple comparisons.

Type I Error

The incorrect rejection of a true null hypothesis or a false positive in hypothesis testing.

Set Of Comparisons

A collection of analyses or tests conducted to evaluate differences or similarities between various groups or conditions.

Single Distribution

Refers to the presentation of data from a single variable, showcasing all of its values and their frequency.