Question

A bank loaned out $68,000, part of it at the rate of 13% per year and the rest at a rate of 5%per year. If the interest received was $5880, how much was loaned at 13%

Answer 1

Answer: $31000 was loaned at 13%.

Step-by-step explanation:

Let x represent the amount loaned out at 13% interest rate.

Let y represent the amount loaned out at 5% interest rate.

The bank loaned out $68,000, part of it at the rate of 13% per year and the rest at a rate of 5%per year. It means that

x + y = 68000

The interest received made from $x in one year is

13/100 × x = 0.13x

The interest received made from $y in one year is

5/100 × x = 0.05y

If the interest received was $5880, it means that

0.13x + 0.05y = 5880- - - - - - - - - 1

Substituting x = 68000 - y into equation 1, it becomes

0.13(68000 - y) + 0.05y = 5880

8840 - 0.13y + 0.05y = 5880

- 0.13y + 0.05y = 5880 - 8840

- 0.08y = - 2960

y = - 2960/- 0.08

y = 37000

x = 68000 - y = 68000 - 37000

x = $31000