Question

A bank loaned out 18000, part of it at the rate of 8% per year and 16% per year. If the interest received in one year cost $2000 how much was loaned at 8%

Answer 1

Let's represent the amount loaned at 8% as "x" and the amount loaned at 16% as "(18000 - x)".

We can set up an equation based on the interest received:

Interest from 8% part + Interest from 16% part = Total Interest
(0.08 * x) + (0.16 * (18000 - x)) = 2000

Now, solve for "x":

0.08x + 0.16(18000 - x) = 2000
0.08x + 2880 - 0.16x = 2000
-0.08x = -880
x = 11000

So, $11,000 was loaned at 8%.