# Juan borrows \$100,000 to pay for medical school. He borrows part of the money from the school whereby he will pay 4.5% simple interest. He borrows the rest of the money through a government loan that will charge him 6% interest. In both cases, he is not required to pay off the principal or interest during his 4 yr of medical school. However, at the end of 4 yr, he will owe a total of \$19,200 for the interest from both loans. How much did he borrow from each source?

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Juan borrows \$100,000 to pay for medical school. He borrows part of the money from the school whereby he will pay 4.5% simple interest. He borrows the rest of the money through a government loan that will charge him 6% interest. In both cases, he is not required to pay off the principal or interest during his 4 yr of medical school. However, at the end of 4 yr, he will owe a total of \$19,200 for the interest from both loans. How much did he borrow from each source?

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Step 1

Given:

Juan borrows \$100,000 to pay for medical school. He borrows part of the money from the school whereby he will pay 4.5% simple interest. He borrows the rest of the money through a government loan that will charge him 6% interest. In both cases, he is not required to pay off the principal or interest during his 4 yr of medical school. However, at the end of 4 yr, he will owe a total of \$19,200 for the interest from both loans. How much did he borrow from each source?

Step 2

Let there are two unknown quantity in the question. So, let assume first amount is x and another be y.

Step 3

Now forming the two ...

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