A bank loaned out $8,000, part of it at the rate of 13% annual interest, and the rest at 8% annual interest. The total interest earned for both loans was $890.0

Question

$ ______ was loaned at 13% and

$ ______ was loaned at 8%

Answer 1

If they loaned x dollars at 13%

They loaned 8000-x dollars at 8%

 

I = prt

 

890 = x(.13)(1) + (8000-x)(.08)(1)

890 = .13x + 640 - .08x

890 = .05x + 640

250 = .05x

 

x = 250/.05 = $5,000 loaned at 13%

8000-5000 = $3,000 loaned at 8%