Question

A bank loaned out $21,500 part of it at the rate of 11% annual interest, and the rate at 4% annual interest. The total interest earned of both loans was $1,175.00. How much was loaned at each rate?

Answer 1

The question pertains to finding the amounts of money loaned at two different interest rates when given the total loan amount and total interest earned, through solving a system of equations.

Step-by-step explanation:

The student is asking to find out how much was loaned out at two different interest rates when the total sum of the loans is $21,500 and the total interest earned is $1,175. This question involves setting up a system of equations to represent the situation and solving for the unknown amounts loaned at each rate.

Let's use x to represent the amount loaned at 11% interest and y to represent the amount loaned at 4% interest. The problem gives us two equations based on the total loan amount and the total interest earned:

1. x + y = $21,500 (total loan amount)
2. 0.11x + 0.04y = $1,175 (total interest earned)

By solving this system of equations, we can find the individual loan amounts for the 11% and 4% interest rates.