Problema Solution

A bank loaned out $120,000, part of it at the rate of 8% per year and the rest at the rate of 12% per year. If yhe interest recieved totaled $11,000, how much was loaned at 8%?

Answer provided by our tutors

let x = the amount with 8% interest.

let y = the amount with 12% interest.

x + y = 120000(1)

0.08x + 0.12y = 11000 (2)

multiply (1) by -0.8:

-0.08x - 0.08y = - 9600 (3)

(2) + (3):

0.04y = 1400

y = 35000

x = 120000 - 35000 = 85000

$85000 was loaned at 8%