A bank loaned out $32,000, 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 $3,500.00. How much was loaned at each rate?

Answer 1

.12x + .1(32,000-x) = 3500

x = amount loaned at 12%, 32000-x = amount loaned at 10%

.12x - .10x = 3500 -3200

.02x = 300

x = 300/.02 = $15,000

32000-x= $17,000

.12(15000)+.10(17000)

= 1800 +1700

= 3500