Story Problem

Question

A bank loaned out $76,000, part of it at the rate of 9% per year and the rest at the rate of 2% per year. If the total amount of interest owed to the bank at the end of one year was $5270, what was the amount that the bank loaned out at 9%?

Answer 1

 X - amount loaned on 9%

 

76000 - X  - amount loaned on 2%

 

 X ( 0.09) + ( 76000 - X ) 0.02 = 5270

 

  X ( 0.07) = 5270 - 1520 = 3750

 

 X = 53571.43 / amount loaned at .09