Question

Sally took out a loan for $20,000. The loan was governed by compound interest at a rate of 3%. She made a payment of $2500 one year later and a payment of $3,000 three years after she took out the loan. Find the amount of principal applied in the second payment. 

          Sally took out a loan for $20,000. The loan was governed by compound interest at a rate of 3%. She made a payment of $2500 one year later and a payment of $3,000 three years after she took out the loan. Find the amount of principal applied in the second payment.
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Sally took out a loan for 20,000. The loan was governed by compound interest at a rate of 3%. She made a payment of $2500 one year later and a payment of $3,000 three years after she took out the loan. Find the amount of principal applied in the second payment.

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Horngren’s Cost Accounting
Horngren’s Cost Accounting
Srikant M. Datar, Madhav V. Rajan 16th Edition
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Sally took out a loan for $20,000. The loan was governed by compound interest at a rate of 3%. She madea payment of $2500 one year later and a payment of $3,000 three years after she took out the loan. Find the amount of principal applied in the second payment. Sally took out a loan for $20,000. The loan was governed by compound interest at a rate of 3%. She made a payment of $2500 one year later and a payment of $3,000 three years after she took out the loan. Find the amount of principal applied in thesecond payment
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Transcript

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00:01 Hi, here it is given that a student borrows a total of 5400 in a student loans from two lenders.
00:09 So, that here let us consider x be the amount let x be the amount borrowed from bank one and let y be the amount borrowed from bank two.
00:50 So that here we have to find the amount she borrowed from bank one such that here we know that the total amount borrowed is 5400 so that we can say x plus y equals to 5400.
01:06 Now, we also note that after three years she owe a total of 923 .70 dollars in interest from both loans.
01:38 Here the interest from bank one is 3 .5 percentage and bank two is 6 .4 percentage.
02:01 Now, we can write the equation as 0 .035 that is 3 .5 percentage of x into 3 plus 0 .064 that is 6 .4 percentage of y into 3 that is for three years which is equals to 923 .70.
02:25 Now, we can rewrite this equation as 0 .105x plus 0 .192y equals to 923 .70...
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