Chuck receives loans totaling $12,000 from two ba. One bank charges 7.5% annual interest, and the second bank charges 6% annual interest. He paid $840 in total interest in one year. How much was loaned at each bank?

Chuck receives loans totaling $12,000 from two ba. One bank charges 7.5% annual interest, and the second bank charges 6% annual interest. He paid $840 in total interest in one year. How much was loaned at each bank?

Question
Equations and inequalities
asked 2020-10-23
Chuck receives loans totaling $12,000 from two ba
. One bank charges 7.5% annual interest, and the second bank charges 6% annual interest. He paid $840 in total interest in one year. How much was loaned at each bank?

Answers (1)

2020-10-24
Let x be the amount loaned at 7.5% so that 12000 - x is the amount loaned at 6%, both in dollars.
The interest in one year is $840 so we can write: 0.075x+0.06(12000-x)=840
Solve for x: 0.075x+720-0.06x=840
0.015x=120
\(\displaystyle{x}=\frac{{120}}{{0.015}}\)
x=8000
So, the amount loaned at 7.5% is $8000 and the amount loaned at 6% is $4000
0

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