SOLUTION: A bank loaned out $14,000, part of it at the rate of 8 % per year and the rest at 16 % per year. If the interest received in one year totaled $1500, how much was loaned
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Question 1143897: A bank loaned out $14,000, part of it at the rate of 8 % per year and the rest at 16 % per year. If the interest received in one year totaled $1500, how much was loaned at 8 % ? Answer by ikleyn(52776) (Show Source):
Let x be the amount loaned at 8%.
Then the amount loaned at 16% is the rest (14000-x) dollars.
Your equation is
interest + interest = total interest, or
0.08x + 0.16*(14000-x) = 1500 dollars.
From the equation express x and calculate
x = = 9250.
ANSWER. $9250 was invested at 8%.
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It is a standard and typical problem on investments.
You will find there different approaches (using one equation or a system of two equations in two unknowns), as well as
different methods of solution to the equations (Substitution, Elimination).
