Problema Solution
A credit union loaned out $50,000, part at an annual rate of 5% and rest at an annual rate of 8%. They collected combined simple interest of $3,400 from the loans that year. How much was loaned out at each rate?
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A credit union loaned out $50,000, part at an annual rate of 5% and rest at an annual rate of 8%. They collected combined simple interest of $3,400 from the loans that year. How much was loaned out at each rate?
Solution:
5% rate: x
8% rate: y
So
x+y=50000
5%x+8%y = 3400
So
x=20000
y=30000
So
5% rate: $20,000
8% rate: $30,000