Question

1. Investment problem: A bank loaned $10,000, some at an annual rate of 8% and some at an annual rate of 12%. If the income from these loans was $1,000, how much was loaned at 8 % and how much at 12%?

Answer 1

Solved;

From the formula;

Interest = Principle*Rate*Time

Principle = $10,000. Let x =the amount lent at 12%. The amount lent at 8% is thus ($10,000-x).

The problem doesn't give the time period, so I'll assume Time = 1 year.

Interest =$1000 = x*(0.12)*1 + (10,000-x)*(0.08)*1

1000 = 0.12x + 800 - 0.08x

200 = 0.04x

x=5000

Therefore ,amount loaned at 12%=$5000

And amount loaned at 8%=(10000-5000)=$5000. Answer