If the reserve rate is 4% and a bank, receives a deposit of $12,000, how much of the $12,000 is the bank free to loan out?

reserve rate is the amount the bank keeps, so they would loan out 96%

12000x 0.96 = $11,520 is free to laon out

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step-by-step explanation:

or

step-by-step explanation:

we need to solve for 'x' the following equation:  

we have that:

⇒

⇒ ⇒

factorizing, we get that:

  ⇒

then, the solutions are: or

nothing extraneous has been found!