A bank loaned out $20,000, part of it at the rate of 9% annual interest, and the rest at 14% annual interest. The total interest earned for both loans was $2,575.00. How much was loaned at each rate?

Answer 1

.14x + .09(20,000- x) = 2,575

x = amount loaned at 14%

20,000-x = amount loane at 9%

.14x -.09x = 2,575 -.09(20,000)

.05x = 2575- 1800

x = 775/.05 = 775(20) = $15,500 at 14%

20000-15500 = $4,500 at 9%

check the answers:

average = 2575/20000 = .12875 = 12.875%= 12 7/8 % return on the $20,000

= 12 7/8 %

14- 12.875 = 1 1/8 % = 9/8

12.875 - 9 = 3 7/8 % = 31/8

31/8 over 9/8 = 31/9

15500/4500 = 155/45 = 31/9

.09(4500) + .14(15500)

= 405+2170

= 2575