A bank loaned out $15,000 to a college student. Part of this money was loaned at a rate of 6% per year, and the rest of the $15,000 was loaned at a rate of 13% per year. If the bank received $1390 in interest, how much was loaned at 6%?

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- Jan 21st 2008, 07:12 PMTammy07Math Word Problem
A bank loaned out $15,000 to a college student. Part of this money was loaned at a rate of 6% per year, and the rest of the $15,000 was loaned at a rate of 13% per year. If the bank received $1390 in interest, how much was loaned at 6%?

- Jan 21st 2008, 07:20 PMJhevon
how long was the loan active for?

assuming the interest collected was at the end of the first year:

let $\displaystyle x$ be the amoutn loaned at 6%. then $\displaystyle 15000 - x$ is the amount loaned at 13%

the interest on $\displaystyle x$ is: $\displaystyle 0.06x$

the interest on the rest is: $\displaystyle 0.13(15000 - x)$

the total interest is: 1390

thus, $\displaystyle 0.06x + 0.13(15000 - x) = 1390$

now solve for $\displaystyle x$ - Jan 21st 2008, 07:33 PMmr fantastic