Problema Solution
Ralph plans to sell a piece of property for $170000. He wants the money to be paid off in two ways a short-term note at 11% interest and a long term note at 9% interest. Find the amount of each note if the total annual interest paid is $17200.
Answer provided by our tutors
let 'x' represent the amount on the 11% note, then '170000-x' represents the amount on the 9% note
17200 = 0.11x + 0.09(170000-x)
solving for 'x' we have x=95000
170000-95000 = 75000
the 11% note was for $95,000, the 9% note was for $75,000