Question

A bank loaned out $8,500, part of it at the rate of 14% annual interest, and the rest at 5% annual interest. The total interest earned for both loans was $785.00. How much was loaned at each rate?
$____ was ;oaned at 14% and $____ was loaned at 5%

Answer 1

Answer:

$4,000 was invested at 14% per year, while $ 4,500 was invested at 5% per year.

Step-by-step explanation:

Given that a bank loaned out $ 8,500, part of it at the rate of 14% annual interest, and the rest at 5% annual interest, and the total interest earned for both loans was $ 785.00, to determine how much was loaned at each rate you must perform the following calculation:

8,500 x 0.14 + 0 x 0.05 = 1,190

6,500 x 0.14 + 2,000 x 0.05 = 1,010

4,500 x 0.14 + 4,000 x 0.05 = 830

4,000 x 0.14 + 4,500 x 0.05 = 785

Thus, $ 4,000 was invested at 14% per year, while $ 4,500 was invested at 5% per year.