SOLUTION: Chuck receives loans totaling $12,000 from two banks. One bank charges 7.5% annual interest, and the second bank charges 9% annual interest. He paid $960 in total interest in one y

Question 234701: Chuck receives loans totaling $12,000 from two banks. One bank charges 7.5% annual interest, and the second bank charges 9% annual interest. He paid $960 in total interest in one year. How much was loaned at each bank ?
could you show me how to set up the equation for this.
Answer by josmiceli(19441) (Show Source): You can put this solution on YOUR website!
The formula for simple interest is

= amount after years
= interest rate
= original amount
-------------------------------
Let = amount loaned by 1st bank
Then will be the amount loaned by other bank
bank 1:

---------------
bank 2:

---------------
The interest paid to bank 1 is
The interest paid to bank 2 is
The total interest paid to the two banks is

The total interest paid is $960

$8000 was loaned at bank 1
$4000 was loaned at bank 2
check answer:

and

OK
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