Problema Solution
Ralph 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 12% interest and a long term note at 9% interest. Find the amount of each note if the total annual interest paid is $14750.
The amount of the 12% note is ??
The amount of the 9% note is ??
Answer provided by our tutors
let
x = the amount of the 12% note
y = the amount of the 9% note
Ralph Chase plans to sell a piece of property for $160,000:
x + y = 160,000
the total annual interest paid is $14,750:
0.12x + 0.09y = 14750
by solving the system of equations:
x + y = 160000
0.12x + 0.09y = 14750
we find
x = $11,666.67
y = $148,333.33
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The amount of the 12% note is $11,666.67.
The amount of the 9% note is $148,333.33.