Problema Solution

Ralph chase plans to sell a piece of property for 145000. He wants the money 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 is 13100

Answer provided by our tutors

let


x = the money paid of as a short-term note at 10% interest


y = the money paid of as a long-term note at 8% interest


Ralph chase plans to sell a piece of property for 145000:


x + y = 145,000


the total annual interest paid is 13100:


0.10x + 0.08y = 13100


by solving the system of equations:


x + y = 145000


0.10x + 0.08y = 13100


we find:


x = $75,000


y = $70,000


click here to see the step by step solution of the system of equations:


Click to see all the steps



$75,000 were paid off as a short-term note at 10% interest.


$70,000 were paid off as a long-term note at 8% interest.