A bank loaned out $16,000, part of it at the rate of 10% annual interest, and the rest at 12% annual interest. The total interest earned for both loans was $1,650.00. How much was loaned at each rate?

Answer 1

.10x +.12y = 1650

x+y = 16000

y= 16000-x

.1x +.12(16000-x) = 1650

.1x -.12x = 1650 -.12(16000)

.02x = 1650 - 12(160) = 1650-1920=-270

x = 270/.02 = $13,500 invested at 10%

y = 16000-13500= $2,500 invested at 12%

.10(13500) + .12(2500)

= 1,350 + 300 = 1650