Question

A bank loaned out $26,000, part of it at the rate of 12% annual interest, and the rest at 3% annual interest. The total interest earned for both loans was $1,455.00. How much was loaned at each rate

Answer 1

The amount loaned for 12% annual interest is $ 7,500 and amount loaned for 3% annual interest is $ 18,500 .

Solution:

Let us assume that the amount loaned for 12% annual interest is x

then amount loaned for 3% annual interest is $ 26,000 - x.

Total Interest = Interest on 12% amount + Interest on 3% amount

$\frac{12}{100}$ × x + (26,000 - x) × $\frac{3}{100}$ = 1,455

0.12x + 0.03 × (26,000 - x) = 1,455

0.12x + 780 - 0.03x = 1,455

0.09x = 1,455 - 780

0.09x = 675

x = $ 7,500

Also, the amount loaned at 3% is 26,000 - 7,500 = $18,500

What are bank loan?

• bank loans are debt Interest that a bank or other financial institution issues to a company, repackages, and then sells to investors.
• The Interest that has been repackaged comprises of several loans. Prior to any other financial commitments, senior bank loans have a legal claim to the borrower's assets.

Know more about bank loans https://brainly.com/question/27380105

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