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Profit problem.

bergausstein

Active member
Jul 30, 2013
191
A small firm borrows \$1000 from a stockholder at a sim-pleinterest rate of 7.5%. The company secretary lends the firm an additional sum at a simple interest rate of
8.25%. At the end of one year, the firm repays a total of
\$3997.75. How much did the secretary lend the firm and
what is the simple interest rate on the total loan?

let

$y=$ additional money lent

$1000+y =$ total amount of money lent.

$1000(0.075)+0.0825y=3997.75$

$0.0825y=3997.75-75$

$y=47,548.48$ - additional money lent.

$1000+47,548.84 = 48548.48$ total amount of money lent.

$\frac{3997.75}{48548.48}=0.823=8.23\%$ interest rate on the total loan.


i just want to confirm if my solution is correct. thanks!
 

mathworker

Active member
May 31, 2013
118

LATEBLOOMER

New member
Aug 7, 2013
21
Re: ALGEBRA Profit problem.

it's not correct!:)
 
Last edited:

bergausstein

Active member
Jul 30, 2013
191
Re: ALGEBRA Profit problem.

i can't figure it out. please help.
 

mente oscura

Well-known member
Nov 29, 2013
172
Re: ALGEBRA Profit problem.

i can't figure it out. please help.
Hello.

Stockholder: 1000.00

Interest stockholder:[tex]\ 1000.00*0.075=75.00[/tex]

Secretary= x

Interest secretary= 0.0825x

It tries to continue.

Regards.
 

bergausstein

Active member
Jul 30, 2013
191
Re: ALGEBRA Profit problem.

that's what i do above.

i added $75+0.0825y=3997.75$ then $y=47548.48485$

what's wrong with my solution?
 

mente oscura

Well-known member
Nov 29, 2013
172
Re: ALGEBRA Profit problem.

that's what i do above.

i added $75+0.0825y=3997.75$ then $y=47548.48485$

what's wrong with my solution?
Hello.

A small firm, at the end of one year, the firm repays a total of $3997.75. (The amount + interests)

Repays: 1000.00+75.00+x+0.0825x=3997.75

For all these questions, you thinks that it is your money, and you will see like you are not wrong. :) If you give 1000.00 $ to one year, to an interest rate. You are satisfied if only they give you the interests?

It tries to continue. :)

Regards.
 

bergausstein

Active member
Jul 30, 2013
191
Re: ALGEBRA Profit problem.

the additional money lent is \$2700

the total money lent is \$3700.

simple interest rate of total loan is

$0.0825(y)+75=0.0825(2700)+75=297.75$

the simple interest rate for the total loan is 8% am i correct?
 

mente oscura

Well-known member
Nov 29, 2013
172
Re: ALGEBRA Profit problem.

the additional money lent is \$2700

the total money lent is \$3700.

simple interest rate of total loan is

$0.0825(y)+75=0.0825(2700)+75=297.75$

the simple interest rate for the total loan is 8% am i correct?
Yes.

8.047%

Regards.
 

MarkFL

Administrator
Staff member
Feb 24, 2012
13,775
Re: ALGEBRA Profit problem.

...
It tries to continue...
Have you ever seen the movie The Silence of The Lambs? (Smile)

Your wording there puts me in mind of a character in the movie.
 

mente oscura

Well-known member
Nov 29, 2013
172
Re: ALGEBRA Profit problem.

Have you ever seen the movie The Silence of The Lambs? (Smile)

Your wording there puts me in mind of a character in the movie.
(Rofl)

What?

Yes.

Yes, I have seen the movie. Whom do I him resemble?(Bigsmile)

Regards.
 

MarkFL

Administrator
Staff member
Feb 24, 2012
13,775
Re: ALGEBRA Profit problem.

(Rofl)

What?

Yes.

Yes, I have seen the movie. Whom do I him resemble?(Bigsmile)

Regards.
Do you recall the serial killer "Buffalo Bill" that was keeping the young woman in a pit in his basement, and he would say things like:

"It rubs the lotion on its skin..."

"It puts the lotion in the basket..."

When you stated, "It tries to continue," I thought of this character. :D

I do apologize to the OP for hijacking the thread, but I just couldn't resist interjecting a bit of humor here and the thread seemed to have run its course.
 

HallsofIvy

Well-known member
MHB Math Helper
Jan 29, 2012
1,151
A small firm borrows \$1000 from a stockholder at a sim-pleinterest rate of 7.5%. The company secretary lends the firm an additional sum at a simple interest rate of
8.25%. At the end of one year, the firm repays a total of
\$3997.75. How much did the secretary lend the firm and
what is the simple interest rate on the total loan?

let

$y=$ additional money lent

$1000+y =$ total amount of money lent.

$1000(0.075)+0.0825y=3997.75$
This is incorrect. The left side is the interest accrued over the year. The right side is the total principle and interest. They are NOT equal.

$0.0825y=3997.75-75$

$y=47,548.48$ - additional money lent.

$1000+47,548.84 = 48548.48$ total amount of money lent.

$\frac{3997.75}{48548.48}=0.823=8.23\%$ interest rate on the total loan.


i just want to confirm if my solution is correct. thanks!