A bank loaned out $14,000, part of it at the rate of 9% per year and the rest at 19% per year. If...

Question:

A bank loaned out $14,000, part of it at the rate of 9% per year and the rest at 19% per year. If the interest received in one year totaled $2,000, how much was loaned at 9%?

Basic Algebra:

This problem calls for the use of basic algebra. Algebra is a branch of mathematics focused on statements which describe the relationships between variables. It enables one to frame variables and relationships into equations and solve for unknowns.

Answer and Explanation:

$6,600 was loaned at 9%. The support for this answer is provided below.

We are given the following two equations:

.09x + .19y = $2,000

x + y = $14,000

By embedding the second equation into the first, we can solve the problem. The computations and results are outlined below.

.09($14,000 - y) + .19y = $2,000

$1,260 - .09y + .19y = $2,000

.10y = $740

y = $7,400

We know y. Now, we can plug y into the second equation to solve x. See below.

x + $7,400 = $14,000

x = $6,600


Learn more about this topic:

Loading...
Basic Algebra: Rules, Equations & Examples

from SAT Subject Test Mathematics Level 2: Tutoring Solution

Chapter 4 / Lesson 10
135K

Related to this Question

Explore our homework questions and answers library