Problema Solution
Ralph Chase plans to sell a piece of property for $160000. He wants the money to be paid off in two ways minusa short-term note at 10% interest and a long-term note at 7% interest. Find the amount of each note if the total annual interest paid is $13900.
Answer provided by our tutors
Let
x = the money paid at a short-term note at 10% interest
y = the money paid at a long-term note at 7% interest
Ralph Chase plan to sell a piece of property for $160,000
x + y = 160000
The total annual interest paid is $13,900
0.10x + 0.07y = 13900
We have the folloing system of equation
x + y = 160000
0.10x + 0.07y = 13900
........
click here to see the system of equations solved for x and y
........
x = $90,000
y = $ 70,000
$90,000 is invested in short-term note at 10% interest.
$70,000 is invested in long-term note at 7% interest.