Problema Solution
Chase plans to sell a piece of property for 160000. He wants the money to be paid off in two ways a short term note at 10% interest and a long term note at 8% interest.find the amount of each note if the total annual interest paid is14500
Answer provided by our tutors
let
x = the money paid as a short term note
y = the money paid as a long term note
Chase plans to sell a piece of property for 160000
x + y = 160000
the total annual interest paid is 14500
0.10*x + 0.08*y = 14500
by solving the system of equations
x + y = 160000
0.10*x + 0.08*y = 14500
we find
x = $85,000
y = $75,000
click here to see the step by step solution of the system of equations
$85,000 are paid as a short term note.
$75,000 are paid as a long term note.