Question

A bank loaned out $36,000, part of it at the rate of 5% annual interest, and the rest at 4% annual

interest. The total interest earned for both loans was $1,625.00. How much was loaned at each rate?
SA
SA
was loaned at 5% and
was loaned at 4%.

Answer 1

Let x be the amount loaned at 5% annual interest, then the amount loaned at 4% annual interest is $36,000 - x.

The interest earned on the loan at 5% annual interest is 0.05x, and the interest earned on the loan at 4% annual interest is 0.04($36,000 - x) = $1440 - 0.04x.

The total interest earned on both loans is $1625, so we can set up the equation:

0.05x + (1440 - 0.04x) = 1625

Simplifying and solving for x, we get:

0.01x + 1440 = 1625

0.01x = 185

x = 18500

Therefore, $18,500 was loaned at 5% annual interest, and $17,500 ($36,000 - $18,500) was loaned at 4% annual interest.