SOLUTION: Wendy, a loan officer at a bank, has $1,000,000 to lend and is required to obtain an avg return of 18% per yr. If she can lend at the rate of 19% or at the rate of 16%, how much ca

Question 841644: Wendy, a loan officer at a bank, has $1,000,000 to lend and is required to obtain an avg return of 18% per yr. If she can lend at the rate of 19% or at the rate of 16%, how much can she lend at the 16% rate and still meet her requirement?
I don't quite know what I'm solving for, or really where to start.
Answer by ewatrrr(24785) (Show Source): You can put this solution on YOUR website!

 

Hi,

Let x represent how much can she lend at the 16% rate

(and let M represent the $1,000,000 just for ease of Set Up)

 .16x + .19(M-x) = .18M

    -.03x = -.01M

        x = .01M/.03 = (1/3)$1,000,000   0r $333,333.33

 

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