1. ## Banking

A bank loaned out 12,000 dollars, part at the rate of 8 percent per year and the rest at the rate of 18 per year. If the interest received totalled 1000 dollars, how much was loaned at 8 percent?

Let x = amount of loan at 8 percent

(12,000- x)(0.08) + (12,000)(0.18) = 1000

Is this the correct equation?

2. ## Re: Banking

Originally Posted by harpazo
A bank loaned out 12,000 dollars, part at the rate of 8 percent per year and the rest at the rate of 18 per year. If the interest received totalled 1000 dollars, how much was loaned at 8 percent?

Let x = amount of loan at 8 percent
An improvement over your previous thread! And if the bank loans "x" at 8% then there is 12000- x left to loan at 18%.

(12,000- x)(0.08) + (12,000)(0.18) = 1000
You just said "x = amount of loan at 8 percent" You should have x(0.08) NOT 12000- x. The remaining 12000- x is invested at 18% so you have x(0.08)+ (12000- x)(0.18)= 1000.

Is this the correct equation?

3. ## Re: Banking

x(0.08)+ (12000- x)(0.18)= 1000

x(0.08)+ 2160- x(0.18)= 1000

-0.1x = 1000 - 2160

-0.1x = -1160

x = -1160/-0.1

x = 11,600

The amount loaned at 8 percent is 11,600 dollars.

Keerect!!

5. ## Re: Banking

Wonderful it is to be correct. You have no idea how long I have been struggling with word problems (since my high school days) and I'm currently 53 with a passion for math.