A bank loaned out $11,000, part of it at the rate of 7% annual interest, and the rest at 9% annual interest. The total interest earned for both loans

djeljenike

djeljenike

Answered question

2021-05-30

A bank loaned out $11,000, with 7% annual interest on some of it and 9% annual interest on the rest. The total interest earned for both loans was $860.00. How much was loaned at each rate? ___ was loaned at 7% and ___ was loaned at 9%.

Answer & Explanation

Mitchel Aguirre

Mitchel Aguirre

Skilled2021-05-31Added 94 answers

The amount borrowed at 9% annual interest is represented by 11000 minus the amount borrowed at 7% annual interest, x.
The total interest earned for both loans was $860.00 so we can write: 0.07x+0.09(11000x)=860
Solve for x: 0.07x+9000.09x=860
9900.02x=860
0.02x=130
x=1300.02=6500
Hence, the amount loaned at 7% was $6500 and the amount loaned at 9% was $11000$6500=$4500"

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