Problema Solution
Ralph Chase plans to sell a piece of property for $140000. He wants the money to be payed off in two ways- a short term note at 12% interest and a long term note at 9% interest. Find the amount of each note if the annual intrest payed is 14850.
Answer provided by our tutors
let 'x' represent the amount at 12% interest, then '140000-x' represents the amount of 9% interest
interest = principal * rate * time
we assume time to be equal to 1
14850 = 0.12x + 0.09(140000-x)
solving for 'x' we have x=75000
140000-75000 = 65000
Ralph needs a note for $75,000 at 12% interest and a note at $65,000 at 9% interest