Problema Solution
Ralph Chase plans to sell a piece of property for $170000. 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 note if the total annual interest paid is $14750.
The amount of the 10% note is ??
The amount of the 7% note is ??
Answer provided by our tutors
let the principal amonut by 10% be x
amt by 7% =170000-x
simple interest=principal amt*rate*time/100
14750=x*10*1/100+(170000-x)*7*1/100
x=95000
170000-x=75000