Problema Solution

A bank loaned out $14,000, part of it at the rate of 8% per year and the rest at 18% per year. If the interest received in one year totaled $2,000, how much was loaned at 8%?

Answer provided by our tutors

let


x = the money loaned at rate 8% per year


y = the money loaned at rate 18% per year


a bank loaned out $14,000:


x + y = 18000


the interest received in one year totaled $2,000:


0.08x + 0.18y = 2000


by solving the system of equations:


x + y = 18000


0.08x + 0.18y = 2000


we find:


x = $12,400


y = $5,600


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$12,400 was loaned at 8%.