Problema Solution
Ralph Chase plan to sell a piece of property for $145000. He wants the money to be paid off in two ways-a short -term note at 10% interest and a long-term note at 7% interest. Find the amount of each not if the total annual interest paid is $12550.
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 $145000
x + y = 145000
the total annual interest paid is $12550
0.10x + 0.07y = 12550
by solving the system of equation
x + y = 145000
0.10x + 0.07y = 12550
we find
x = $80,000
y = $ 65,000
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