Please help me figure out the amount of the loans. ?

Question

Here is the problem. I cannot figure out how to set this up. Any help would be appreciated.

Dimitri owes a certain amount at 5% and twice as much at 6%. The total interest owned is $425. Find the amount of each loan.

Answer 1

Assume he owes x dollars on the first loan.

Interest on first loan = 5x/100 = x/20

Interest on second loan = 6(2x)/100 =12x/100 = 3x/25

x/20+3x/25 = 425

(25x+60x) / 500 = 425

85x = 425 (500)

85x = 212,500

x=2,500 on first loan

2x=5,000 on second loan

Answer 2

Simple interest or compound interest?

I'll assume simple interest.

5% loan = x

6% loan = 2x

x(0.05) + (2x)(0.06) = 425

(0.05)x + (0.12)x = 425

(0.17)x = 425

x = 2500

So...

5% loan = 2500

6% loan = 5000

Answer 3

Let:

x = amount of loan at 5% interest

2x = amount of loan at 6% interest

0.05x + 0.06(2x) = 425

0.17x = 425

x = $2500

2x = $5000