Problema Solution
Chase planse to sell a piece of property for $18000. 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 not if the total annual interest paid is $19200.
Answer provided by our tutors
let
x = a short-term note
y = a long-term note
x + y = 18000
0.12x + 0.09y = 1920
by solving the above system of equations we find:
x = $10,000
y = $8,000
click here to see the step by step solution of the system of equations:
$10,000 is the money invested in short-term note.
$8,000 is the money invested in long-term note.