Example

Solving a Dual Student Loan Interest Application Using a System of Equations

A system of equations can solve for the principal amounts of two distinct student loans using mixture principles. For instance, if Laura owes $18,000\$18{,}000 on a bank loan at 2.5%2.5\% interest and a federal loan at 6.9%6.9\% interest, and she paid a total of $1,066\$1{,}066 in interest, let bb be the bank loan amount and ff be the federal loan amount. The principal equation is b+f=18,000b + f = 18{,}000 and the interest equation is 0.025b+0.069f=1,0660.025b + 0.069f = 1{,}066. Solving this system establishes that her bank loan principal was $4,000\$4{,}000 and her federal loan principal was $14,000\$14{,}000.

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Updated 2026-04-25

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